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ICC United Kingdom’s Official G20 Publication


The Voice of UK Business


Preparing the ground for UK engagement beyond the EU


› UK trade negotiations Public-private sector collaboration › Uniting the economy and environment Driving sustainability from the bottom up › Anti-trade sentiment in US & Europe What’s causing the backlash



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ICC United Kingdom’s Official G20 Publication

Publishers Note

Dear Readers, I would like to take this opportunity to thank the UK team for their dedication in helping make this a successful second edition of the UK G20 Summit publication. Christopher Atkins Publisher and Founder Cat Company, Inc.

This is a paramount time for UK businesses as they prepare for EU exit. The G20 Summit is a vital venue for the UK to develop better trade and economic partnerships with existing countries and also forge new ones. The CAT Company has a 20-year history as the foremost publisher of the G20 Business, G20 Leaders, G20 YEA, G7 Leaders and APEC CEO Summits. We are honoured to be the publisher for the ICC UK and have created a broad-based publication to highlight the priorities of the G20 Summit. We hope you enjoy our publication and we look forward to publishing our third UK G20 publication and the G20 Business Summit edition for the Argentinian presidency in 2018.

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ICC United Kingdom’s Official G20 Publication

May 2017



Features 07 / Chairman’s foreword by Sir Michael Rake

08 / B20 Infographic 09 / The city is a European asset 10 / ICC’s CEO Advisory Group

ICC United Kingdom’s Official G20 Publication


The Voice of UK Business


12 / 60 Second interview: Anny Tubbs 14 / The strong case for trade

Preparing the ground for UK engagement beyond the EU

by John Carroll


› UK trade negotiations Public-private sector collaboration › Uniting the economy and environment Driving sustainability from the bottom up

16 / Business priorities

› Anti-trade sentiment in US & Europe What’s causing

by Chris Southworth

the backlash


18 / Rising anti-trade sentiment in US and Europe: The drivers and possible responses


by Marianne Schneider-Petsinger

21 / The risks to global trade posed by protectionist values

Publisher: Chris Atkins

by Baihas Baghdadi

Secretary General ICC UK: Chris Southworth

24 / UK Growth Forecast by Rain Newton Smith

26 / How trade benefits local communities

ICC Editorial Advisor: Sophie Dembinski

by Sean Ramsden

30 / The rules that explain Global Trade

Creative Director: Christian Gilliham christian@cgcreate.co.uk T: (+44) 7951 722265

by David Lowe

32 / ICC UN Observer status: Global business priorities at the UN by Louise Kantrow

34 / The Neglected Necessity: Creating enabling frameworks to unite economy and environment for global sustainable developments


by James Bacchus

by Will Kenyon

40 / Connecting communities, Transforming trade 48 / Bridge the gaps for more inclusive and sustainable growth

Publishing Firm: The CAT Company, Inc.

by Sophie Dembinski

50 / Intellectual Property: Vital Protections Promoting Healthy Trade

CEO & Founder: Chris Atkins

by Allen Dixon

52 / Harnessing the smart energy revolution

Partnerships & Development: Tyrone Eastman

by Simon Hobday

by Heather Self

56 / Enabling paperless trade by Alexander Goulandris

58 / UK Annual Trade Finance Conference: Regulation, digitisation and standardisation the hot topics of trade finance 62 / Asia can no longer expect to export its way to growth by Michael Every and Peter Hirst

64 / Global Debate: Business and government must collaborate on UK trade negotiations 68 / Meet your global business network

Special Editorial Feature: GCEL 42 / Harnessing the Potential of the Digital Economy 46 / How Digital Economy Tools Can Assist To Rebalance The Global Economy 48 / The Global Solution Foundation For Sustainable Economic Growth Has Started

by Jenny Stewart

70 / Securing Scotland’s Exporting Future by Liz Cameron OBE

72 / G7: An opportunity for business to engage by Maria-Beatrice Deli

74 / The future of trade for Europe: No simple solutions for complex issues 76 / ICC WCF World Chambers Congress: Connecting chambers across the globe 80 / Business for our Better World by Cherie Nursalim

82 / Birmingham Care Group by Fiona Latcman

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Page 07 Sir Michael Rake Chairman, ICC United Kingdom

38 / Ethical business in uncertain times

54 / Dealing with tax challenges as a result of Brexit


Advertisers Index 02 Schloss Elmau 05 DSX Inc 21 Brexit Advisory Group priorities 28 ICC Global Champions 29 Buenos Aires World Trade Agenda 73 Priodev 75 GITI 84 Eden Roc 86 Pelago 88 Better Business with SDG Pyramid

The content within this publication is made available on the terms and conditions that the publisher, editors, contributors and related parties: • shall  have no responsibility for any action or omission by any other contributor, consultant, editor or related party. • disclaim any and all liability and responsibility to any person or party, be they a purchaser, reader, advertiser or consumer of this publication or not, in regards to the consequences and outcomes of anything done or omitted being in reliance whether partly or solely on the contents of this publication and related website and products. • are not responsible in any way for the actions or results taken by any person, organisation or any party on the basis of reading information or contributions in this publication, website or related products.


G20: The Case for Engagement

Sir Michael Rake FCA, FCGI was knighted in 2007 is chairman of BT Group plc (2007) and Worldpay Group plc (2015). He is also a director of S&P Global (2008), and chairman of Majid AL Futtaim Holdings LLC (2010). Mike’s business advisory roles include chairman of the International Chamber of Commerce UK, a Senior Adviser for Chatham House and a member of the Oxford University Centre for Corporate Reputation Global Advisory Board. Mike is a William Pitt Fellow at Pembroke College, Cambridge. He is also a member of the International Business and Diplomatic Exchange (IBDE) Advisory Board, EPI’s Advisory Group on Education and Employment and the Productivity Leadership Group. Mike is also Vice President of the RNIB. Mike’s former principal roles include Chairman (both UK and International) of KPMG, Chairman of easyJet, President of the Confederation of British Industry, Deputy Chairman of Barclays and director of the Financial Reporting Council.

G20 and its business equivalent (B20) will become critical for UK business once the UK leaves the EU. G20 is a unique forum bringing together the major developed and emerging nations to set global economic and trade policy priorities. These priorities shape the mandates for international institutions that influence the trading environment in which UK businesses operate, particularly outside the EU. It will be essential that we contribute and help shape this environment if we are to be successful in the future. At B20 Germany, eighteen UK businesses have engaged across seven taskforces. The UK is ranked 7th in terms of participation with less than half the numbers of businesses contributing than Germany, the USA and China. Of the eighteen companies participating, 50% are from the financial services with no businesses in the English regions, Wales or Northern Ireland and a range of strategic sectors such as automotive, aerospace, construction or IT/technology unrepresented. At a strategic level two of the five G20 knowledge partners are UK firms, one taskforce co-chair and 29% of the European group within ICC’s G20 CEO Advisory Group.

Post Brexit, the UK business community will need to engage more effectively and on a different scale if we want to shape the world trade agenda and business environment. We have two years to begin preparing the ground; increasing the UK profile at major events, strengthening alliances with government and across the business community and deepening our engagement with global institutions. It is in all our interests to work together and play our part in re-making the case for free trade at every level if we want to tackle the global challenges facing business, ensure the business environment is easier to trade for the UK. Standing up for free trade has never been so important. At ICC, we have been watching and learning from the B20 China and Germany cycles. For B20 Argentina, we will need more engagement from a wider spectrum of companies, sectors and regions in the B20 taskforces when they open of registration in the autumn. This will ensure the right level of technical expertise is feeding into shaping the final G20 policy recommendations in 2018. We will also need to work more closely across the business community and with the government to ensure our voices are aligned and key messages reinforced when they need to be. These

efforts will benefit UK jobs and skills by creating the right environment to support international trade and investment both in and beyond Europe. The primary beneficiaries from this work are SMEs, mid-size businesses and emerging markets all of which are top trade priorities for a Global Britain. Having spent over a decade on the periphery of the world trade community, Argentina has much to gain from hosting G20 in 2018. It is an excellent opportunity to promote a more open approach to economic development. We should support their efforts and use the opportunity to strengthen our own capabilities as we prepare the ground for life outside the EU. As the largest world business organisation representing 6.5 million businesses in 134 countries and a well-established track record at the UN and G20, ICC is uniquely placed to help. If you would like to know more about what we are doing, get in touch. Sir Michael Rake Chairman, ICC United Kingdom


SNAPSHOT: B20 GERMANY • UK PARTICIPATION ICC United Kingdom’s Official G20 Publication

Xxxxxxxx Authored by: Xxxxxxxxxx



HQ in Scotland


HQ in London

HQ in the Channel Islands

2 OF5 X 18

1 OF7

xxxxxxxxxx ■

G20 Knowledge Partners are UK firms

UK companies participating in 7 taskforces

Top 7 participating countries

Participation by company size

Sector breakdown: UK Commodities





United Kingdom





Taskforce Co-Chairs represents a UK company




Financial Services

Hospitality Pharmaceutical Beverages

ICC G20 CEO Advisory Group Overview Utilities Telecommunications

Automotive Chemicals



Other Construction Energy Food & Drink

Entertainment Financial Services

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North America

44% Europe

9% 9% South America


of which are UK members

6% East Asia & Pacific

Business Opportunity Authored by: Alderman Dr Andrew Parmley

The city is a European asset


hen Queen Victoria opened London’s spectacular Crystal Palace at the Great Exhibition of 1851 the UK was without a doubt the world’s leading industrial power, responsible for more than half of the world’s production of iron, coal, and cotton cloth – staples of the industrial revolution. This dominance in manufacturing and industrialisation continued for many decades. Even in the 1970s manufacturing contributed more than 25% of the UK’s GDP. While we still lead the world in some areas of manufacturing, particularly high-tech industries such as aerospace, the UK’s most important commercial sector is now far and away financial and professional services. The City of London has been a global centre for business for hundreds of years, constantly reinventing itself to reflect the needs of the country and the world. In the 19th century the Pool of London was the busiest port in the world, with thousands of ships docking at London’s wharves every month to accommodate the booming

industrial trade between the “workshop of the world” and the rest of the globe. Following the decline in British manufacturing the City has developed itself as a leading centre of finance to service not only British, but also global, demands for financial and professional services. The City is still transforming itself to stay with the times, adding a vibrant fintech industry to the other sectors to which we are world leading, such as legal services, insurance and shipbroking. In today’s world, financial services touch our lives every day, with banks and investment firms protecting our money and helping us save for the future. The UK’s investment and savings industry has been so successful that the average pensioner household no longer relies on state benefits for the bulk of its income. Our wellestablished insurance industry ensures that there is ample competition for consumers, allowing best value to be achieved. Pension funds come from across Europe and the world to invest in London and access these deep pools of capital.

UK banks cater for around four million British small businesses, helping to finance expansion and investments which bring jobs and other opportunities to people across the UK. Similarly, large companies from across the world come to London to list their companies on our stock market and raise money to fund expansion and growth which benefit millions of people across the developing world. London’s status as the world’s leading financial hub has contributed to it becoming the dominant centre for green finance and foreign exchange. This success has been built on the UK’s open and outward looking nature, welcoming talented individuals from around the world, and always seeking out overseas business opportunities. In the Square Mile we are keen for this to continue. Maintaining easy access to our most important market, the European Union, will be extremely important for maintaining economic growth across the UK. There needs to be a thorough debate on the issues that Brexit brings up, with businesses carefully assessing the impact of the alternatives and feeding those assessments into the upcoming negotiations. The City is a European and global asset, and the imminent negotiations should fully recognise this, , not in order to protect “the City” in the UK but rather to protect jobs, tax revenues and the efficient functioning of the economy across the UK, Europe and the world. Keeping the financial services industry in the UK strong will benefit the world’s developing and developed countries alike. The City will be hoping that the leaders of the EU 27 will fully acknowledge that and that it will be reflected in the eventual outcome of the Brexit negotiations. ■

Alderman Dr Andrew Parmley took office as the 689th Lord Mayor on 11 November. During his year in office Andrew will be visiting dozens of key target partner countries, such as Morocco, Turkey, Pakistan, and China at the head of City business delegations. Andrew was born in Manchester and grew up in Lancashire. He was educated at Blackpool Grammar School, the Royal Academy of Music, at Manchester and London Universities and Jesus College, Cambridge. He is the City representative for the Prime Minister’s Apprenticeship Delivery Board (which aims to create three million apprenticeships over the next four years) and is the Principal of Senior School of The Harrodian School in West London.

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ICC United Kingdom’s Official G20 Publication

G20 Introduction Authored by: Philip Kucharski

Introduction to the ICC G20 CEO Advisory Group


he G20, with its mixed membership of advanced and emerging economies, has become a powerful force for shaping the rules of engagement for competing in global markets. It is a natural focal point for ICC’s unique international policy stewardship. This mandate derives from ICC’s historic responsibility as the voice of world business to convey policy priorities to government leaders. The first time we sat down with the G7 was in Houston in 1990, when American President George H. W. Bush called on ICC to share business concerns and present policy priorities. That tradition has continued for the past 27 years. With this understanding, ICC formed the ICC G20 CEO Advisory Group to spearhead global business engagement and communicate high-level business perspectives to G20 Leaders.

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The Group is composed of approximately 35 CEOs who are actively concerned with the G20 agenda and keen to engage with peers, set priorities and speak out on the issues most vital to business. They work to pursue world business priorities on an ongoing basis. The ICC G20 CEO Advisory Group has been an active participant in the “Business-20” (B20) process. Starting with the first official G20 Business Summit in Seoul in 2010, business, operating collectively as the B20, has come together every year at the invitation of each successive host G20 government, to develop business priorities and present policy recommendations to G20 Leaders. More recently, ICC’s engagement in the B20 Germany process started immediately after the Chinese Hangzhou Summit, with members of the ICC G20 CEO Advisory

Group participating in each of the seven taskforces and cross-cutting working groups. As a result of our collaboration, B20 Germany invited ICC to serve as Business Network Partner for the following task forces and working groups: Trade & Investment; Energy, Climate & Resource Efficiency; Digitalization; Responsible Business Conduct & Anti-Corruption. ICC has served as a strategic partner to country hosts in Korea, France, Mexico, Russia, Australia, Turkey, China – and now in Germany – where ICC’s global CEO members have held leadership positions in many of the B20 policy task forces. ICC experts and company deputies have also contributed global business expertise and contributed to building continuity between Summits and G20 presidencies. In addition to the set of issue-specific policy papers/recommendations developed

for each B20 Summit, the ICC CEO Advisory Group also produces associated reports that strengthen business messages to G20 leaders: ■ The ICC Open Markets Index (OMI) – a biennial report that ranks 75 countries – notably G20 countries—according to indicators of market openness to trade and investment. ■ The ICC G20 Business Scorecard – the Scorecard tracks the G20’s performance year-over-year in taking into account business recommendations and moving them forward. The Scorecard provides a useful indicator of the G20’s responsiveness to business priorities, as well as a tool for business leaders to improve their ability to tailor recommendations and engagement with the G20 from Summit to Summit. As we approach the Berlin B20 Summit in May, ICC is already looking ahead to

Argentina’s G20 Presidency, where ICC is working closely with ICC’s national committee in Argentina -that brings together the major Argentine business organisations- to support the Argentine business community’s preparations for B20 Argentina. As always ICC’s priority through the ICC G20 CEO Advisory Group will remain focused on ensuring that the decisions by G20 leaders reflect global business priorities, in support of open economies and inclusive growth. I wish to take this opportunity to invite business leaders interested in contributing to the global business voice to the G20 to join the ICC CEO G20 Advisory Group. At a time when the benefits of open economies and societies are being challenged by protectionism and economic nationalism, it is important now more than ever that business leaders worldwide play a leading role by engaging in the work of the G20. ■


Philip Kucharski is an international development professional with extensive senior-level experience in managing multi-cultural projects and networks. Previously Head of Business Development and Global Networks, Mr Kucharski returned to ICC in Jan 2015 as COO, in charge of the operational management of the organization reporting to the Secretary General. This new hands-on role brings a fresh approach to ICC’s structural, operational and commercial development with a new global management team. Formerly Market Director EMEA for The Economist newspaper and Director of International Press for the Presstalis Group, Mr Kucharski has more than 20 years’ experience in building media brands, exploring new markets and managing international development projects.

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ICC United Kingdom’s Official G20 Publication


60 second interview: Anny Tubbs: B20 priorities Anny Tubbs, Chief Business Integrity Office, Unilever, discusses her contribution towards the B20 work in her capacity as co-chair of the Cross-Thematic Group on Responsible Business Conduct and Anti-Corruption – highlighting the importance of engaging in the B20. Q: Firstly, what is your role as co-Chair of the Cross-Thematic Group in B20? A: I was delighted that Klaus Moosmayer of Siemens invited me to join as a co-Chair under the German presidency. All in all, we represent diverse geographies and business perspectives. We have had the opportunity to work closely with a proactive co-ordination team and other Group members to select themes that can strengthen our dialogue with the G20. It is vital for business to find effective ways to collaborate with peers, civil society and the public sector – drawing on existing learnings and best practices to make responsible growth commonplace. Our approach builds on previous B20 and G20 work, and reflects the goals of the German G20 Presidency – calling out the importance of “Resilience, Responsibility and Responsiveness”. Q: In your view why should companies engage in the G20 and the B20, and how exactly can they do this? A: Regulatory requirements and ethical standards are not new to business, but expectations and aspirations for business to lead by example have increased. This stems from a mix of factors, including the proliferation of new laws, greater regulatory

and media scrutiny, a volatile overall environment, and greater appetite for purpose-driven business models. It is important to align on what issues need tackling as a priority, and the roles business can play. Q: What values do companies get from engaging in a task force? A: Transparency is the new normal, but so is information overload. We all need reliable, user-friendly information on the latest developments. A clear benefit of engaging in this Group has been learning about numerous initiatives to fight corruption and promote responsible business conduct in different parts of the world, and to meet many of the thought leaders behind these. The Policy Paper provides a useful recap, in addition to recommendations to the G20: businesses can follow up selectively with other platforms, depending on their needs. The B20 task forces also allow companies to provide a “reality check” on what businesses require in practice to innovate and grow on a level playing field. In our Group, honest conversations about impediments to embedding a culture of integrity – including demand side corruption concerns – and collective action took place in a spirit of constructive dialogue. Q: Based on the B20 Policy Paper, “Promoting Integrity by Creating Opportunities for Responsible Business”, what are the most important aspects for the B20 and G20 to consider this year? A: Our recommendations to the leaders of the G20 countries revolve around three


topics, namely establishing beneficial ownership transparency, recognising compliance efforts, and enhancing Responsible Business Conduct in infrastructure projects. Each recommendation encompasses three policy actions for the G20 members. A central message is that the regulatory framework must allow companies to see the benefits of proactively embracing opportunities for responsible business conduct. We hope that our recommendations will be used to ensure existing and future initiatives get strong business support. The work must continue. Q: How do these priorities translate to the global level in line with the global anti-corruption movement, and what can UK companies do? A: We are keen to accelerate collective action and a responsible growth mind-set. Our B20 Group has called for a globally coherent approach to the topics covered in its Policy Paper. UK companies are well placed to contribute to ongoing work in this area, both nationally and internationally. They can play an important role in capacitybuilding and holding governments to account, so combined efforts bring about real change and benefits, and responsible business models can flourish. Q: Why is it important for companies to engage with organisations such as ICC? A: The G20, and likewise the B20, touch upon an impressive array of topics across annual cycles. Whatever lies ahead, we cannot be passive bystanders. ICC is a valued interlocutor and strong voice of business both at and in between G20/B20 meetings and Presidencies. It has an impressive track record when it comes to rallying business leaders who want to make a difference, and working inclusively with others to elaborate valuable tools and guidance. There is more to be done and I look forward to seeing how the ICC help champion vibrant, sustainable and inclusive business initiatives. â–

Anny Tubbs is Chief Business Integrity Officer at Unilever since 2015, after joining Unilever in 2008. In 2017, she has contributed to the work of the B20 in her capacity as co-chair of the Cross-Thematic Group on Responsible Business Conduct and Anti-Corruption.

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ICC United Kingdom’s Official G20 Publication

Trade Authored by: John Carroll

The strong case for trade John Carroll, Chair of the International Chamber of Commerce (ICC) United Kingdom’s Trade and Investment Policy committee, explains why a stronger, more united voice for trade is needed.


rade drives global economic growth, helps boost industry competitiveness, creates jobs and develops services that communities rely on. Trade has helped reduce worldwide poverty levels at an astonishing rate: according to the World Bank, China alone has raised 700 million people out of poverty as a result of trade and openness in the last 40 years. Yet the role of trade in building economies and societies is often overlooked. As anti-trade rhetoric and support for protectionist policies continues to spread worldwide, policymakers and business leaders must work harder to emphasise the benefits of free trade globally.

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Trade backlash? You don’t have to look far to find an emerging backlash against free trade. On both sides of the Atlantic, the support for protectionism is becoming increasingly evident. In the UK, we traditionally hold a more positive view of trade than our European friends. Prime Minister Theresa May has repeatedly spoken of a “global Britain”, and a YouGov survey in 2015 found that when it comes to the specific benefits or drawbacks of free trade agreements, 50% of the people surveyed believe that free trade policies are beneficial for UK business. That said, signs of growing protectionism are certainly emerging. Red tape Such attitudes can have real-world harmful effects. Free trade agreements create jobs and prosperity. They encourage foreign investment and lead to economic growth, as we have

seen by the prediction that the recent Trade Facilitation Agreement (TFA) by the World Trade Organisations has the potential to boost global trade by up to $1 trillion per year. Those who advocate protectionist policies do so with the belief that international trade is harmful to jobs. The data simply does not support this contention. Roberto Azevêdo, Director General of the WTO, said that four out of five job losses in industrialised countries are, in fact, due to automation and efficiency measures, rather than competition from foreign labour. International trade actually creates jobs – a European Commission report in 2015 found that over 31 million jobs across Europe were supported by EU exports to the rest of the world. Trying to hinder the development of free trade agreements will stunt progress. Furthermore, adding “red tape” can be crippling to commerce, particularly affecting smaller companies, where even a 2-3% increase in trade costs could mean the difference between attracting or losing foreign investment, not to mention the difference

between finding success or going bust. Trickling down Policymakers and business leaders worldwide must therefore be vocal about the benefits for trade and come together – whether representing local/national government, a large multinational corporation, or the smallest company in the middle of the countryside. Chambers of commerce in particular play a crucial role in educating local communities about the benefits of international trade and should ensure they resonate across the UK. To show how these benefits can work for all, policymakers must ensure more equitable distribution of wealth. Firstly, the regions need investment. And, here in the UK, there has been some progress. The “Midlands Engine” strategy, for instance, launched in March 2017 by the Chancellor of the Exchequer, will focus on building skills, enterprise and innovation to encourage trade with the global market. £392 million will be available to invest in the Midlands from the Local Growth Fund. Furthermore, the Midlands Investment

Hub, which is part of the Department of International Trade, has been launched to manage all trade enquiries coming from the region. Similar, welcome progress is being seen in the “Northern Powerhouse”, too. Second, we need a regulatory infrastructure that supports business more. The UK has access to the highest level of technology innovation and e-commerce, but our regulations are not necessarily keeping pace. One example is Blockchain – an opportunity we cannot harness to its full potential the right regulatory standards are place. Access to first-class technology and e-commerce could transform the UK business landscape and internationalise Small to Medium-sized Enterprises (SMEs) – one reason why ICC is developing a policy roadmap for digitisation and my own organisation, Santander, has developed an innovative online Trade Portal for customers across our global network. Of course, communication and collaboration is also key. The World Chambers congress is an ideal platform for

connecting the global with the local. Moreover, global organisations such as ICC, and specifically the ICC United Kingdom Trade and Investment Committee, must work closely on a national level with local chambers – to hear the concerns of local business, and communicate them on the global stage. Finally, if businesses – of all sizes, across all sectors, and in any location across Britain – want to feel the benefits of trade, they must get involved with policy formation. Currently, the B20 – the G20 group on business – only sees the involvement of 17 UK companies. And none of them come from North of the M25. If the UK companies that aren’t being heard want to be, they need to make sure they’re speaking on the right platform. It is crucial they engage with local chambers of commerce, global organisations, such as ICC that can voice their concerns on an international stage, and with the B20. The fight against protectionism is necessary and may be difficult. But in order to stand a chance of winning, we need to get everyone involved. ■

John Carroll is Head of Product Management & International Business Throughout his 17 years with the Group, John has held a diverse range of senior roles for Santander across the Markets, International Payments and Trade space, and has extensive experience in the Asian, Latin American, European and the Middle Eastern markets. Since May 2015, John is leading Santander Corporate & Commercial Solutions & Insight teams, responsible for strategy, customer insights, solutions and specialists sales such as transactional banking, international and working capital solutions. Prior to that he has successfully led the International division within Santander Corporate & Commercial Bank since September 2013, delivering a unique proposition in the UK market, which was recently named the ‘Best International Solutions Provider’ at the Business Moneyfacts awards 2015. This key differentiator has proven to be a successful way to attract new clients to the bank, which not only delivers growth records for International but also allows the bank to capture their domestic business too. John was previously the Head of the Financial Institutions Group (FIG) in Santander UK where he significantly grew the FIG franchise in the three years prior to his move to International.

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ICC United Kingdom’s Official G20 Publication

Global Trade Authored by: Chris Southworth

Business priorities Tackling protectionism is a top priority if the UK wants to be successful outside the EU single market. Chris Southworth, Secretary General of the International Chamber of Commerce (ICC) United Kingdom, reflects on the ICC’s World Trade Agenda Day in London, which provided an opportunity to discuss the implications for business and policymakers.


he International Chamber of Commerce’s (ICC) World Trade Agenda Day in London last week couldn’t have come at a better time, taking place shortly after the G20 finance ministers dropped the anti-protectionist pledge and before the triggering of Article 50 to leave the EU. Tackling protectionism has never been more important for the UK as it prepares the ground to leave the EU. “Trade has played a vital part in the response to many of the challenges we face today – poverty, job creation, mass migration and climate change, for instance,” highlighted ICC’s Secretary General, John Danilovich. “Protectionism poses a real danger to this progress.” Protectionism – when governments create barriers to international trade and investment in favour of national priorities – generates uncertainty and undermines business confidence. “The role of business is to create wealth for economies and societies,” explained Richard Meddings, Chair, Audit Committee, Deutsche Bank. “But business needs a degree of certainty in order to be confident in its forecasts, strategic choices and investment decisions.” Implications for business So what is causing the frustration and anger that is driving nationalism and protectionism? Harold McGraw III, Chairman Emeritus of S&P Global, and Honorary Chairman of ICC, suggested slow economic growth was one of the main forces behind protectionism in the US: “US GDP has not risen above 2% for the past eight years. As a result, we’ve seen a lot of anger and anxiety over the future, which has contributed towards a middle class revolt.” “Surprisingly,” said Karien van Gennip, CEO, ING Bank France, “it is often the middle classes – those who have gained 16 ❙ iccwbo.uk

from globalisation – who fear they have much to lose and then turn to nationalism and protectionism.” Protectionism in the 21st century It is important to understand what protectionism looks like in the 21st century. According to John Denton, CEO Corrs Chambers Westgarth and ICC’s next global Chairman: “One of the many forms which protectionism is now taking is in denying access to finance – for instance, denying opportunities to access the US financial system.” “We have to mitigate the adverse effects of protectionism on trade and investment and encourage policymakers to be more disciplined,” Phillipe Varin, Chairman, Areva, added. “We cannot be ambiguous in our communication. We need to state – if you don’t stop being protectionist then you risk creating conflict.” With rapid technological change, it is crucial to mitigate the impact technology can have in displacing jobs. Trade is often blamed for job losses, but, more often than not, it is new technology that creates faster ways of doing things. Governments must invest harder in skills so that people can adapt when a new technology arrives. “30% of today’s workforce will be at work in 2050,” Baroness Shriti Vadera, Chairman, Santander UK, commented. “People need to be equipped with the appropriate skills. We need collaboration and a joint publicprivate policy approach. The answer is effective training and reskilling.” Remaking the case for trade Throughout the event, one message was clear: the international business community has a clear role in the fight against protectionism. Business can contribute to addressing the issue of the winners and losers from globalisation.

“As a business, being aware of the political rhetoric is not enough,” said van Gennip. “Business needs to help assess how to facilitate wealth distribution and inclusive globalisation. It is not just the responsibility of governments; we must speak up and be a partner in the debate.” Panellists agreed that the business community has to remake the arguments for trade, while also earning back trust in society. “Those who favour open markets and societies must defend the reasons why,” said James Bacchus, former US Congressman and Chair of ICC’s Commission on Trade and Investment. The business community also needs to communicate beyond normal channels. As Sir Michael Rake, Chairman at ICC United Kingdom, highlighted: “We need to talk to people beyond our immediate vicinity – outside of this room – in order to remake the argument for trade and help rebuild trust in institutions.” Areva’s Varin suggested that the business community should encourage G20 members to take a strong anti-protectionist stance at this year’s G20 Hamburg summit.

AS THE UK PREPARES TO COME OUT OF THE EU, THE GLOBAL TRADING ENVIRONMENT IN THE REST OF THE WORLD WILL BECOME EVEN MORE IMPORTANT. IT IS THE INTERESTS OF GOVERNMENT AND BUSINESS TO WORK TOGETHER AND MAKE SURE THIS ENVIRONMENT IS OPEN AND FREE TO TRADE. Collaboration between business and government is crucial in finding the best solution for more growth and jobs – exactly why the B20 and G20 are most effective when both forums work closely together. This is precisely why the ICC’s Trade Matters campaign aims to readdress the public narrative around global trade and explain why protectionism is no path to progress. John Danilovich stated that the ICC G20 CEO Advisory Group will set out an effective outreach programme to all G20 governments, to guard against any roll-back of existing efforts to keep markets open. As the UK prepares to come out of the EU, the global trading environment in the rest of the world will become even more important. It is the interests of government and business to work together and make sure this environment is open and free to trade.

All parties at the discussion agreed that protectionism must be tackled. It creates barriers to trade and undermines business confidence. Governments also need to invest much harder in skills so people feel more able to adapt and change with the arrival of new technologies. It was also agreed that businesses have an important role to play in rebuilding trust with society, remaking the case for trade and finding new, more inclusive ways communicate. Above all, it is in everyone’s interests for government and business to work together and find sustainable solutions. ■ ICC’s World Trade Agenda Day was held at K&L Gates in London on the 23rd March. The next World Trade Agenda Day will be in Nairobi, Kenya in July.

Chris Southworth is Secretary General at the International Chamber of Commerce UK. Prior to joining ICC he was Executive Director for Global Partnerships, at the British Chambers of Commerce (BCC), Head of the International Chambers of Commerce Unit at UK Trade and Investment and a Senior Policy Advisor to Lord Heseltine for his independent review of UK competitiveness. In 2011 he helped set up the mid-size business export programme at UKTI and was a Senior Policy Advisor for the 2011 Government Review of MidSize Businesses. Former roles have encompassed deregulatory policy at Better Regulation Executive, social enterprise policy at the Department for Business and stints in a local strategic partnership and the charity sector.

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ICC United Kingdom’s Official G20 Publication

Trade Authored by: Marianne Schneider-Petsinger

Rising anti-trade sentiment in US and Europe: The drivers and possible responses


t the G20 summit in Hamburg, addressing rising protectionism and the increasing doubt about the benefits of free trade will be on the agenda. The outcome of the US election in particular has raised concerns that President Trump’s protectionist policies could represent a tectonic shift for global trade. Under Trump, the US has withdrawn from the Trans-Pacific Partnership (TPP), the future of the North American Free Trade Agreement (NAFTA) is uncertain, plans for the Transatlantic Trade and Investment Partnership (TTIP) are in the freezer, and trade frictions with China are likely on the horizon. But free trade was in trouble even before Trump’s win. In the presidential race, Hillary Clinton and Bernie Sanders also opposed TPP. Moreover, Europe is witnessing its own trade backlash – illustrated by massive demonstrations against TTIP and the Canada-EU trade deal. Despite the negative debate on trade during the US presidential election, a month into Trump’s presidency, 72% of Americans viewed trade as an economic opportunity. But support for trade in general does not equate to support for specific trade agreements: 44% of Americans say that TPP would be a bad thing for the US while only 35% view it favourably. In Europe, slightly more than half of all EU citizens are for TTIP. But in some member states opposition is very high. In Austria and Germany, 72% and 53% of the population say they are against a US-EU trade deal. What causes the trade backlash? A focal point of Trump’s campaign was ‘bad trade deals’ and the US trade deficit that he blamed for the loss of US manufacturing jobs and lower wages. Though past trade agreements such as NAFTA, and the inclusion of China into the global economy, have hurt workers in certain US regions and sectors, trade is not the main culprit. Technological change is a much more important factor. In recognition that trade causes some displacement in the labour market, US Trade Adjustment Assistance offers support to those adversely affected. However, the programme has largely been ineffective given stringent eligibility criteria and high costs. This undermines efforts for further trade liberalisation. Unfair trade practices by other countries – such as dumping, subsidies, and currency manipulation – were also highlighted during the US election. China, for instance, has used unfair practices to build up excess capacity in industries like the steel sector, which has contributed to job losses and lower wages in some domestic industries. Compared to American fears about the impact of trade on the labour market,

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European concerns – especially regarding TTIP – centre on the potential lowering of standards in sensitive areas such as food safety or data privacy. Trade negotiators have repeatedly stressed that standards and the government’s right to regulate would not be undermined. But since trade agreements are no longer mostly about reducing tariffs, and increasingly address regulations and standards, the latest negotiations have come under much greater public scrutiny. In the public’s eyes, recent trade negotiations have been conducted in secret and favour the interests of big business. To address this, the EU has made efforts to increase transparency and engage with civil society. Trade negotiations need a certain degree of confidentiality, but given the focus of trade negotiations on regulations and standards, there is a stronger case for wider input and public participation. In the European debate on TTIP, provisions regarding investor-state dispute settlement (ISDS) were another contentious issue. In response to public opposition, the EU launched a public consultation on this subject and has since put forth proposals for a permanent multilateral investment court. A forward-looking trade agenda Against the backdrop of growing anti-trade sentiment, trade policymakers should continue to convey the benefits of trade while at the same time acknowledging valid concerns and shortcomings of the current trading system. To move the trade debate forward, there needs to be an objective discussion on the impact of trade agreements on standards, the need for transparency, and the role of investment protection in trade agreements. Workers in some sectors face real burdens stemming from trade. Thus, strengthening trade adjustment assistance


and addressing unfair trade practices is crucial. But even more important is the development of a strategy that looks beyond the narrow trade lens and promotes skillstraining and life-long learning. As part of a broader communications strategy, the strategic benefits of trade deals – such as providing economic leadership, setting the rules of the road, and cementing relationships with foreign nations – need to be emphasised more. Though President Obama made the case for TPP by highlighting the strategic aspects of the deal, the arguments did not gain much traction with the public. In the past, the G20 has been a key forum for the world’s leading economies to speak out against protectionist measures. But with the Trump administration at the table, the G20 might water down its pledges to promote open trade. This would be the wrong turn given the current tide of anti-trade sentiment. ■

Marianne SchneiderPetsinger is geo-economics fellow in the US and Americas Programme at Chatham House, where she is responsible for analysis at the nexus of political and economic issues. Previously, she managed the Transatlantic Consumer Dialogue – an international membership body representing consumer organizations in the EU and US. She has also worked on transatlantic issues at the American Institute for Contemporary German Studies and at the Ministry of Economic Affairs in the German State of Thuringia. Marianne completed her graduate studies focusing on international trade and finance at the Fletcher School of Law and Diplomacy (Tufts University) and the John F Kennedy School (Harvard University).

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PROMOTING OPEN, CROSS-BORDER TRADE AND INVESTMENT DURING BREXIT NEGOTIATIONS Multilateralism remains the best approach to promote open, cross border trade and investment—promoting non-discrimination, minimising red tape and providing a level playing field through a single set of global rules. The UK-EU relationship plays an important role in an integrated world economy supporting complex

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trade and investment relationships and supply chains. A large scale free trade agreement can support a multilateral approach if negotiations are conducted within the framework and rules set out by the World Trade Organisation. The following statements are intended as a useful communication tool to support international businesses during Brexit negotiations.

CERTAINTY ON THE BIG TICKET ITEMS Business needs early certainty regarding the treatment of labour, access to finance and the free movement of goods and services across Europe.

ORDERLY ROAD MAP FOR BUSINESS A transparent and coherent road map is needwed that sets out how the UK and EU will interact post-Brexit regarding the legal framework for trade, customs, tax, data, rules of origin, intellectual property, competition, treaties, e-commerce, disputes etc.

SOLUTIONS THAT WORK FOR ALL PARTIES Parties should undertake an inclusive approach that meets the needs of all affected parties—investors, importers, exporters, sectors, companies of all sizes and jurisdictions, unions and civil society.

PHASED IMPLEMENTATION A phased implementation period would provide a pragmatic solution to minimise unnecessary disruption and risk whilst giving sufficient time to finding the right long-term solutions to the more complex issues.

SEAMLESS REGULATIONS AND STANDARDS A phased implementation period would provide a pragmatic solution to minimise unnecessary disruption and risk while giving sufficient time to find the right long-term solutions to the more complex issues.

NO INCREASE IN RED TAPE AND COST Economic growth remains the global priority—action to ensure there will be no increase in red tape and cost will generate confidence and ensure small companies are not disproportionately affected.

REGULAR DIALOGUE Policy makers and negotiators should undertake regular and intensive consultations with businesses of all sizes and sectors to ensure all voices are heard.

This set of statements has been provided by the ICC Brexit Advisory Group, a group of international business experts and national offices drawn from across the ICC network and coordinated by ICC United Kingdom.

brexit@iccwbo.uk #brexit

ICC United Kingdom’s Official G20 Publication

Global Trade Authored by: Baihas Baghdadi

The risks to global trade posed by protectionist values There are three ways in which protectionism may disrupt the current global trade landscape says Baihas Baghdadi, Managing Director, Global Head of Trade & Working Capital at Barclays.


he rise of populism in developed countries presents a risk to the global trade landscape, as citizens in countries affected by the financial crisis draw links between unemployment and inequality, and globalisation and free trade policies. With this in mind, populist leaders are using protectionist rhetoric to win public support. They are promising to ‘bring back’ the jobs that have been outsourced to emerging markets over many years and to restrict the use of cheap labour in foreign countries, with a view to driving up wages at home. While it is possible to see the logic in this strategy, it is nevertheless a strategy that is fraught with risk for the global trade landscape. There are three areas, in particular, where protectionism is posing a threat to the stability of the world trading environment. Supply chain disruption Firstly, protectionism could disrupt the global supply chain of goods and services. Multinational companies rely on securing raw materials and labour from emerging markets to produce goods that that they can sell at a competitive price in the developed markets. Many of the products we use everyday are manufactured in a wide range of countries and, if companies are forced to reorganise their supply chains to comply with protectionist policies, it could become more expensive for them to be in business. As a result, they will either have to take a hit to their profitability or pass on price hikes to their customers. ›


ICC United Kingdom’s Official G20 Publication

Global Trade

› Furthermore, switching the location of manufacturing or customer services facilities is a complicated process that requires planning, investment of time and money, and access to suitably skilled talent pools. The process of outsourcing activities, particularly to emerging markets, has taken place over the course of three decades. There is no reason to suppose that a reversal of this process will happen any quicker. It is also worth reflecting on the likely impact that supply chain disruption will have on the economies and societies of emerging markets. If jobs are taken away, communities may be plunged into poverty, leading to further social unrest and rising geopolitical tensions. Bribery and corruption The second major threat that is posed by protectionism relates to bribery and corruption. In recent years, lawmakers in many markets have increased pressure on companies to prevent bribery. For example, the UK’s Bribery Act 2010 makes organisations criminally responsible for bribes made on their behalf, regardless of whether they knew about them. While this crackdown on bribery and corruption is absolutely right, it has changed the competitive landscape in some markets where multinationals operate. Some may have lost out on projects, not because of the quality of their offering, but because their rivals were not subject to the same legislation. If protectionism becomes more common, it is possible that some countries – which have been socially responsible about applying anti-bribery laws until now – may decide to relax their high standards in order to help their businesses to win work.


At the same time, if corporates are struggling with their profitability due to supply chain disruption, they may be tempted to chase business in riskier markets as they pursue their trade agenda, in order to protect and diversify their business. The challenge for smaller businesses Finally, the internet has sparked the proliferation of thousands of digital businesses run by micro entrepreneurs who sell goods and services all around the world. If they face higher barriers to entry in the markets they want to sell to, they could quickly find themselves going out of business. Ultimately, protectionism does not look to be the answer to the problems of unemployment and inequality. I believe it will probably only serve to aggravate those problems further by introducing high inflation and thus exacerbate social tensions. It is important to remember that trade barriers can lead to undesirable behaviour and that exporters are reliant on imports to manufacture products. Trade deals should ensure that high standards are maintained and the needs of both exporters and importers are borne in mind. It seems ironic that just as we are on the cusp of being able to make the trade process more efficient than ever before thanks to blockchain technology, the barriers to commerce look set to rise. Letters of credit will soon be completed within hours rather than days, but will companies even need them if they are chained to their domestic markets? It is critical that policy makers consider these impacts. â–

Baihas Baghdadi heads Barclays Trade & Working Capital business globally. He has over 20 years of banking experience in transaction banking and joined Barclays in 2008 as head of Cash Management & Trade Finance Spain. Baihas subsequently held various leadership roles and ran the Trade & Working Capital business outside the UK before his promotion in 2015 to the global head role. Before Barclays, Baihas worked for Fortis Bank as Head of Trade Services and Specialised Financial Services and at Arab Bank in Europe in corporate banking. Baihas holds a Masters in Stock Exchange & Corporate Finance and a BA in Economics & Business Administration.

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ICC United Kingdom’s Official G20 Publication

Growth Authored by: Rain Newton Smith

UK Growth Forecast


ow that we’re a few months into 2017, it seems like a good time to look back over the past year, and take stock. Many words can be used to describe 2016: interesting, challenging, unpredictable. Some are a little too blue for the page. Either way, it’s no exaggeration to state that the EU referendum has re-defined the UK’s political and economic landscape. Most analysts had expected a nearinstantaneous hit to the economy after the vote. But looking through the noise in data since last summer, there seems to be very little sign of a Brexit-related hit to the real economy. Indeed, the UK continued to grow robustly over the second half of 2016 and the CBI’s business surveys point to similarly solid growth over the first three months of this year. However, 2017 will be the year where we start to see some of the economic repercussions come through. In an unusual display of unanimity, economists are widely using one word to describe the year ahead: uncertain. By just how much will economic growth ease? The CBI’s last forecast (published in November) predicted growth of 1.3% in 2017, following a (downwardly revised) expansion of 1.8% last year, and then a further nudge down to 1.1% in 2018. Those are lacklustre numbers for the UK – while the recent resilience in the economy may push our forecast higher, the broad message of slower growth ahead remains intact. A large driver of that is softer consumer spending. Households have continued to shore up the economy since the vote, with consumer spending growing at similarly

strong rates to the last couple of years. However, inflationary pressures are building: the sterling exchange rate fell sharply just after the referendum (by around 12%), which is pushing up import costs for businesses. We can reasonably expect this to feed through to prices at the till further ahead: indeed, inflation is already on the up, rising above the Bank of England’s 2% target in February for the first time in over two years. The resulting pressure on households’ real incomes will weigh significantly on consumer spending, which will in turn bear down on economic growth. Alongside softer household spending, we also expect weaker business investment. While there has been some thawing in the extreme caution seen just after the referendum, both the CBI’s members and business surveys are telling us that uncertainty around the outcome of EU negotiations is putting the brakes on capital spending. As a result, we expect business investment to fall from mid-2017 onwards, before stabilising at the end of 2018. There are some bright spots in the UK’s outlook, however. The weaker pound should also feed through to export growth, and we expect a substantial boost from net trade to the economy both this year and in 2018. We’re seeing some early signs of this already, with our latest manufacturing survey showing a marked improvement in export order books. But this is far from guaranteed. The costs arising from higher import prices could take the edge off this boost, given that many UK exports are made up of imported


components. With global supply chains now much more integrated, meaning that final exports cross many borders before they hit the shops or factory floor, the UK’s exports may now be less susceptible to exchange rate movements than in the past. On the whole, economic prospects look softer than they did before the referendum. But it’s worth remembering that businesses are tackling the challenges posed by Brexit head on – as testified by the recent resilience of the economy. Across the UK, companies are preparing for life outside the EU, and are committed to making it a success. Nonetheless, this is taking place against a backdrop of heightened uncertainty, so the risks to any UK forecast are pretty big at present. In particular, the longer-term outlook for the UK’s potential growth hinges on the outcome of EU negotiations. That’s before we even look at global risks. Like the UK, last year was also an “interesting” one for the US. While looser fiscal policy from a Trump administration could lift near-term activity, there isn’t much clarity over Trump’s eventual actions on issues such as trade and immigration. And strains in the global financial system could rear their heads: in the Eurozone, where a series of elections could spark jitters, and in China, where debt and credit expansion have been rising. The UK is well-placed to weather all this. Our economic fundamentals are strong, and Brexit presents both challenges and opportunities. But with much still up in the air, this year looks like it will be even more uncertain than the last. ■

Rain Newton-Smith is the Chief Economist at the Confederation of British Industry. She and her team provide business leaders with advice on the UK economic outlook and global risks, as well as setting out the business view on economic and tax policy in discussions with policymakers. Previously, Rain was head of Emerging Markets at Oxford Economics with specialist expertise on China. Rain previously worked on the international forecast for the Monetary Policy Committee at the Bank of England, and went on secondment to the International Monetary Fund in Washington D.C. Rain was honoured by the World Economic Forum in 2012 as a Young Global Leader and has been listed in City AM’s Power 100 women.

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ICC United Kingdom’s Official G20 Publication

Community Support Authored by: Sean Ramsden

How trade benefits local communities


am the founder and CEO of Ramsden International, a UK wholesale exporter of British groceries selling favourites from Marmite to Irn-Bru on all five continents. Throughout the 22 years I have led Ramsden International I often reflect on how our employees have contributed to the company’s success of leveraging international trade across every corner of the world, and I am proud of the contribution that our business makes to the local community; offering placement schemes for graduates and young people within our company and

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giving back through charitable schemes as part of our corporate responsibility. Ramsden International’s multicultural workforce has both enabled our international business to flourish and created a diverse group of talented people, largely recruited from the local community. Recruiting locally can be a particular challenge due to the location of our head office and the multilingual requirements for many of our roles, meaning that we have had to explore partnerships with local educational institutions and surrounding universities. Over the last two years, Ramsden

International has recruited its first intake of apprentices, as well as introducing internships and industrial placements for local students in higher education across virtually all of our departments. These initiatives have been a great success, for example working in partnership with the University of Hull we successfully filled our first trainee graduate role. Placements like these give recent graduates and school leaves the opportunity to benefit from essential professional development and transferrable skills, and helps boost their future employability.

In line with our core values, we encourage individuals to grow in confidence and take ownership of their development. As part of supporting career succession we provide opportunities for members of the company to visit local schools, colleges and universities to share their experiences working within an internationally trading business. From our experience, engaging with local schools not only helps a business to understand its future workforce better but it also helps young people to make informed decisions about their academic and career choices.

Beyond our graduate and work placement scheme, the local community is of paramount importance to all at Ramsden International and as part of our comprehensive charity programme, all employees can individually nominate a local charity to receive a monetary donation. It is anticipated that we will donate over £40,000 to good causes in the next year as part of our expanding corporate responsibility goals. My overall aim was to create a business that would not only fuel UK exports, but also sets a good example of engaging positively with its wider community. ■

Sean Ramsden is the founder and Chief Executive of wholesale food exporter Ramsden International distributing over 23,000 British branded-food and drink products to 133+ countries across five continents. In addition to overseeing the business activities of Ramsden International Sean also holds a number of advisory and non-executive positions within the food industry, including membership of the DEFRA Agri-Food and Drink Export Forum, Non-Executive Director of the British Chambers of Commerce (BCC), and a Trustee of Borough Market.


YOUR GLOBAL CHAMPION IN TODAY’S GLOBAL ECONOMY. Here are just a few of the ways in which the International Chamber of Commerce is working to support your global operations:



ICC has spearheaded a successful global advocacy campaign to secure implementation of the landmark Trade Facilitation Agreement —a trade deal to simplify customs and border procedures that could boost global trade flows by more than US$1 trillion dollars.







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ICC’s #TradeMatters campaign provides a direct response to growing populist and protectionist movements in many countries around the world — ensuring a balanced debate on the role of trade integration in today’s economy.

ICC’s Observer Status comes at a time when there is growing business interest in the UN, given the major economic effects of new UN policies to promote sustainable development and tackle climate change.

ICC standards continue to facilitate trillions of dollars of international transactions each year. ICC members currently have the opportunity to shape the future of our flagship Incoterms® rules, which have been the bedrock of world trade for over 80 years.

ENHANCING ACCESS TO FINANCE Our market analytics and research continue to drive the global debate on how to enhance the flow of finance to small businesses and entrepreneurs. We’re also training the next generation of trade finance professionals through the ICC Academy.

ENABLING GROWTH IN THE DIGITAL ECONOMY We work in a range of global forums to champion an open, stable and secure global Internet—ensuring the private sector is at the table in the development of policies on issues from data flows through to cybesecurity. We are also championing trade reforms to unleash the potential of e-commerce to boost the growth of small businesses.

RESOLVING BUSINESS DISPUTES The ICC International Court of Arbitration enjoyed a record year for new cases in 2016 — confirming its status as the world’s premier arbitral institution.



Report by


A WORLD TRADE AGENDA FOR THE BUENOS AIRES MINISTERIAL Commissioned by the ICC World Trade Agenda March 2017

NEW ICC PUBLICATION An initiative in partnership with Qatar Chamber

ICC United Kingdom’s Official G20 Publication

Education Authored by: David Lowe

The rules that explain Global Trade

Underpinning over US$1 trillion of global trade, and used in many a trade contract, you will be hard pushed to find a trade practitioner anywhere that hasn’t heard of the Incoterms rules. The process for revising them – completed once a decade – starts now, in time for the 2020 deadline, and businesses worldwide are being given the chance to have their say. With that in mind, Chris Southworth, Secretary General of ICC United Kingdom, and David Lowe, Partner, Gowling WLG, and Global Co-Chair of ICC Incoterms Drafting Group, explain precisely what the fuss is all about. “The rules that explain global trade” The Incoterms rules, referred to in full as the International Commercial Terms, are the rules that “explain” global trade. They are a reliable, neutral, and universally accepted standard that ensures international trade practitioners – who often communicate across cultures, legal, and linguistic divides – can understand each other when forming a trade contract. The best-known and most widely used Incoterms rules are the Free on Board (FOB) and Cost, Insurance and Freight (CIF) rules. 30 ❙ iccwbo.uk

The birth of the Incoterms Rules As international trade experienced a rapid boom throughout the 19th century, trade practitioners found that they needed to clearly specify the respective risks and responsibilities of each party involved in an international transaction. As such, the use of terms such as FOB and CIF became common practice. Unfortunately, trade practitioners didn’t always understand each other. By the 20th century it had become clear that many widely-used terms were subject to a vast range of interpretations in different national courts: differences that were invariably a source of misunderstanding, leading to unnecessary uncertainties and costs. In 1936, this led ICC – founded in 1919 – to develop the Incoterms Rules in an effort to standardise trading terms. Who uses them, and when? In essence, the Incoterms rules are a way of specifying to the buyer what is “included” in a sale. They indicate which party must pay for transport, bear the risks of loss or damage to goods during transport, and take

responsibility for customs formalities or import/export duties. In the case of CIF and Carriage and Insurance Paid To (CIP), they also explain whether or not the seller is responsible for providing insurance cover. An easy way to avoiding international disputes International trade transactions and contracts, by their nature, span multiple jurisdictions. If at any point there is confusion over what is required of either buyer or seller, it can lead to a dispute. If this does happen, however, it is unclear which jurisdiction – and which country’s national laws – the contract falls under. The use of the Incoterms Rules – which are globally recognised – avoids this problem. Not only does everyone understand what they are doing to begin with, but, if there is any confusion, there are very clear standards that can guide all parties. The use of the Incoterms Rules facilitates trade, avoids disputes, and maintains trade relationships. A once-in-a-decade opportunity Of course, such is the pace of change that

rules made prior to the advent of mobile and internet technology are now outdated, let alone those developed before the Second World War. In the 1960s and 1970s, for instance, there was a rapid expansion of containerised and multimodal transport that substantially changed the conduct of international trade. Hence, roughly once a decade, ICC leverages its vast network – consisting of 6.5 million members across 130 countries – to gather data on the latest trends and the terms used most consistently by trade practitioners. The next round of revisions will be completed by 2020, but the process begins now, and companies all around the world have an opportunity to have their say. How can you get involved? The first stage – taking place at the moment – is perhaps the most significant. This stage is the point at which we gather and review all of the feedback on changes that have taken place in the past decade: a decade of significant technological advancement, as well as political and economic change. In the next few years the feedback provided


will be whittled down to the key terms and rules for review. Finally, for the first time ever, the opportunity to provide your feedback to ICC is open not just to members, but also to a limited number of non-member companies. If you want change, now is the time to ask for it. ■

David Lowe is an experienced partner focusing on commercial contracts and the firm’s Head of International Trade. He also plays a crucial role in the firm’s Brexit Unit. David is the ICC global co-chair of the Incoterms 2020 review, and chairs the ICC UK’s CLP committee. David helps negotiate and draft contracts to achieve their commercial aims in areas such as supply chain, procurement facilities management, outsourcing, logistics, manufacturing, supply of goods and services, and international trade. David was one of the eight expert authors of Incoterms 2010. David won UK Projects and Procurement Lawyer of the year at the International Law Office Client Choice Awards 2013 and was recognised in 2017’s prestigious Acritas Stars database as a ‘star lawyer’.

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ICC United Kingdom’s Official G20 Publication

Global Business Authored by: Louise Kantrow

ICC UN Observer status: Global business priorities at the UN


he fundamental mission of the International Chamber of Commerce has always been to promote an open international trade and investment system, and foster the economic growth of developed and developing countries alike, particularly with a view to better integrate all countries into the world economy. In 1919, the founders of ICC called themselves “Merchants of Peace” because they believed fervently that strong and

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mutually beneficial commercial ties among nations would not only make them more prosperous but also make them less likely to go to war. Today ICC, through its National Committees and World Chambers Federation, reaches businesses in over 230 countries, encompassing over 6.5 million businesses. It represents the private sector from the SME to the large multi-national company in every region of the world. From the very beginning, ICC has spoken

coordinated business and industry contributions to the UN intergovernmental processes, represented and delivered private sector messages, and organized official UN private sector events. During this long and enduring history of cooperation with the UN, ICC has always been the principal voice of the global business community. On December 13th, 2016, in a momentous decision, ICC was granted Observer Status at the UN —providing business with direct

on behalf of business in making representations to governments and intergovernmental organizations. During the 1920s and 1930s, the ICC took part in most economic conferences convened by the League of Nations, where ICC was accredited since 1920. In the aftermath of World War II, ICC once again recognized the importance and need for an intergovernmental body. It fully supported the development of the United Nations. On October 1, 1946, soon after the creation of the UN, ICC was granted general consultative status at the Economic and Social Council. Since then, ICC has enjoyed deep engagement and cooperation with the UN throughout its history in its capacity as the world business organisation—the only body with the network and legitimacy to speak on behalf of the global private sector. As ICC and the UN have collaborated extensively for over 70 years, throughout the years, ICC has

access into the UN system for the very first time. This new—and unique—status for the world business organisation comes at a time when there is growing private sector interest and participation in the work of the UN. In this context, Observer Status provides ICC with a new value proposition that can be used to strengthen ICC’s position as the world business organisation. Granting Observer status to ICC in the General Assembly has strengthened the relationship between UN member states and the global business community, and enhanced the already prevailing collaborative efforts towards global economic and social integration. ICC’s Observer Status provides world business with a direct voice into the UN agenda for the first time: providing an opportunity to shape global policies that work with the private sector to drive sustainable development and extend prosperity for all. It also creates many

more opportunities for comprehensive dialogue on issues raised by globalization. By obtaining Observer Status at the General Assembly, ICC has gained significantly enhanced capacity to represent business views to the international community and help shape the public discourse and policy formation on the full range of global challenges. The Permanent Observer Mission of the ICC to the United Nations now represents business views at the General Assembly as part of ICC’s historic mission to foster peace and prosperity through world trade. ICC was founded to assume this role and did so admirably following two disastrous world wars. The General Assembly is the pre-eminent global focal point where ICC can mobilize its policy-making expertise from companies and business organizations of all sizes and in all regions of the world. ■



ICC only private sector organization granted accreditation to the Conference on International Organization (UNCIO), a convention resulting in the creation of the UN Charter

1953 ECOSOC reviews ICC proposals for a new international convention that would remove local law limitation and create a truly international arbitral enforcement regime which today applies in close to 150 territories



UN invites ICC to participate in nomination of a preparatory panel of experts to report to the 1st UN Conference on the Human Environment

UN and ICC announce plans to cooperate on project to stimulate investment flows to Africa and LDCs

1979 ICC report details over 80 issues being worked on in conjunction with IGOs of the UN system

2003 ICC becomes signatory of UN Global Compact




ICC instrumental in creation of UN Global Compact

UN endorses ICC Documentary Credit Rules






ICC and UN establish the GATT Economic Consultative Committee to address common problems with heads of 8 UN Economic Organizations and the GATT

ICC launches Business Charter for Sustainable Development, one year ahead of the UN Rio “Earth Summit”

UN endorses ICC Incoterms Rules

ICC and UNCTAD establish the Investment Advisory Council at the 3rd UN Conference on LDCs

ICC leads business delegation of over 800 to Third International Conference on Financing for Development in Addis Ababa

Newly formed UN Economic Commission for the Far East encourages ICC’s Commission for Asia and Far East Affairs to establish national committees in the regions

ICC granted top-level consultative status with the United Nations (UN)

High-level representatives from UN agencies participate in the ICC Geneva Business Dialogue


2007 ICC hosts first business day on the sidelines of COP 13


ICC is the business “focal point” for UN climate talks and the landmark Paris Climate Conference (COP21)

ICC and UNEP stage first World Industry Conference on Environmental Management (WICEM)

ICC CEO letter in Financial Times calls on world leaders for a collaborative effort towards attainment of UN Global Goals


Louise Kantrow was appointed ICC Permanent Representative to the United Nations in 2007. Since her appointment, Kantrow has been involved in multiple major UN conferences as ICC and private sector representative. She co-chaired the Private Sector Steering Committee for the Fourth UN Conference on Least Developed Countries, coorganised the Business and Industry Major Group for the 2012 Conference on Sustainable Development, and chaired the Business Sector Steering Committee for the Third International Conference on Financing for Development. Louise also leads the Global Business Alliance for 2030, a robust and inclusive business alliance that provides positive private sector contributions to the formulation and implementation of the 2030 Development Agenda.

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Sustainable Development Authored by: James Bacchus

The Neglected Necessity: Creating Enabling Frameworks to Unite Economy and Environment for Global Sustainable Development


n this time of great global anxiety one overriding necessity is widely neglected: the need to find new ways to grow and govern the world economy that will work both economically and environmentally. Climate change is real. Carbon dioxide levels in the earth’s atmosphere now total more than 400 parts per billion – twice what they were at the dawn of the Industrial Revolution. Human actions are depleting more and more of the natural capital of the earth, and are pushing us closer and closer to the boundaries of what the planet can endure. The international economic integration that we call “globalisation” has lifted nearly a

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billion people out of poverty in the past generation, especially in China, India, and the other emerging economies of Asia. But many people still remain mired in poverty worldwide, living on less than $1.25 per day. What is more, in much of the developed world, the vast economic gains from globalisation have not helped everyone; most of those rewards have gone to the wealthiest among us. In the United States, where 10% of the American people own more than 75% of the overall national wealth, and where the wealth gap continues to grow wider, about two-thirds of the real income gains from globalisation have gone to those in the top 1% while the real incomes of

many of those in the lower middle class have frozen or fallen. In considering and confronting these unprecedented economic and environmental challenges, our habit in every part of the world has long been to treat the economy and the environment as separate. They are not. Therefore, an awareness of the interconnectivity between the economy and the environment must be written into all of the rules we choose together to live by at every level of human governance. The human development we seek must therefore be sustainable development. As the pioneering 1987 Brundtland Report of a


United Nations defined it, sustainable development “meets the needs of the present without compromising the ability of future generations to meet their own needs.” Sustainable development is a form of human development that works economically, environmentally, and inclusively, for today, and equally for tomorrow. Because the natural environment knows no borders, and because the human economy today connects and re-connects across borders, many of these rules in these enabling frameworks must be transnational. The rule of law will therefore not succeed if it is limited and confined within and behind borders. In the eyes and in the efforts of

every nation, the rule of law must also include the international rule of law, which can only be established and maintained through international cooperation. For example, the United Nations culminated several decades of work in September 2015 by agreeing the Sustainable Development Goals (SGDs). Drawing from the engagement of millions of people worldwide, all 194 countries have agreed on 17 global goals and on 169 targets for achieving them. Their aim is to accomplish them all by 2030. These are not modest goals. One of the 17 goals is to “end hunger.” Another is to “end poverty in all its forms everywhere.”

Yet another is to “promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all.” The common pledge in these ambitious goals is that “no one will be left behind.” The SDGs are not rules. They are not laws. They are not binding. They are a collective expression of what the assembled countries of the world have agreed to try to accomplish together through further international rulemaking and international cooperation. If these ambitions are to have real-world practical benefits, then we must understand that there can be no hope of attaining any of these global goals unless we begin ›

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Sustainable Development

› today to bring economy and environment together as one in all of our international rulemaking. The economy is often marginalized in international environmental agreements. Three months after concluding the Sustainable Development Goals, the United Nations concluded the Paris Agreement on climate change. The Paris Agreement is an historic achievement, but it will not work environmentally unless it also works economically. Equally, international trade can help spur the transition to a green economy by hastening the spread of new “climatefriendly” technologies worldwide. The trillions of dollars needed to finance “mitigation and adaptation” actions to address climate change – especially in the developing countries – will inevitably come mostly from the private sector. Yet, though the new global climate agreement speaks vaguely of “non-market approaches” to climate actions, nowhere does the agreement speak specifically of the “market.” We must reimagine economic and environmental agreements as Venn diagrams that acknowledge and address our economic and environmental concerns so that they are consistent with the SDGs. But how can we hope to accomplish any of these agreed global goals in the gloomy political context of today? How can we possibly hope for more international cooperation economically and environmentally at a time when so much of the world seems bent on joining in a raucous and rushed retreat from all further international cooperation – and when America, which led the cooperative global advance so proudly for so long, is now numbered among the first to flee? The right consensus statements at global gatherings are desirable and can be helpful, but the global solutions we seek for sustainability will not be found in any of the solemn proclamations from any of the forthcoming global summits. Solutions are not imposed from the top down. Solutions must arise from the bottom up. The solutions we seek for sustainability will only be found down in the vibrant and innovative enterprise of free marketplaces, and down in the practical problem-solving of the global explosion of creative and collaborative public, private, and public/ private coalitions, alliances, and voluntary networks at the catalytic “grass roots” of the world. Much involved in these “grass roots” endeavours are the many businesses of the world that are helping lead the way toward sustainability. Global solutions for sustainability will be found and scaled up much sooner if all of those around the world who say they 36 ❙ iccwbo.uk


wish to lead us are truly willing to lead us. Environmentally, we have long since passed the point where we must confront the reality of man-made climate change and all the many other human impacts on the earth’s threatened ecosystems, including their far-reaching potential consequences for our economic aspirations. Economically, we simply cannot prosper by retreating from international cooperation, and by rejecting and undermining the rules on which we have long agreed to help govern globalisation. And we cannot grow by turning inward into nativism, protectionism, and a myopic economic nationalism. No country has ever grown – and continued to grow over time – without opening economically to the wider world. Together, we can unite the economy and the environment through the international rule of law in ways that will enable us to shape and share a sustainable global prosperity for all. Then this will no longer be a neglected necessity. ■

James Bacchus is a former Chairman of the Appellate Body of the World Trade Organization; a former Member of the Congress of the United States, from Florida; a former US international trade negotiator, and the author of the book Trade and Freedom. He chairs the global Commission on Trade and Investment Policy of the International Chamber of Commerce. This article was written by James Bacchus in his personal capacity. The opinions expressed in this article are solely the author’s own and do not reflect the views of Greenberg Traurig Law, the WTO, the ICC or any other organization with which he is affiliated.

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Ethical Business Authored by: Will Kenyon

Ethical business in uncertain times


s the ICC makes the case for free trade and open borders against the current international head winds of protectionism, nationalism and a pervasive suspicion of the motives underlying business and wealth creation, it is vital that business seeks to build trust, so that its voice will be listened to. To do so, business must play an active part in the fight against corruption. Businesses must commit to the principles of ethical conduct, show zero tolerance of corrupt behaviour within their own organisations and work with government and civil society to help reduce the destructive impact of corruption, which is endemic in large parts of the world. By the same token, businesses need the support of government and civil society if they are to bring the manifold benefits of free enterprise and trade to the societies in which they operate. ICC UK’s Corporate Responsibility and 38 ❙ iccwbo.uk

Anti-Corruption (CR&AC) policy committee has had a busy year and a half since it was re-launched in late 2015. With a membership of subject matter experts drawn from a wide range of enterprises across many sectors of business, finance and the professions, its key aims are to: ■ Be

a leading business voice in the wider conversation with government and civil society about corporate responsibility and anti-corruption issues; ■ Develop policy and guidance, as necessary, around the challenges faced by businesses in those areas, particularly businesses operating internationally; ■ Play an active part in the dialogue between business and government, with particular focus on how both can work together to promote ethical business and a conducive political and business environment within which it can operate; and

■ Contribute

to the development and implementation of ICC’s CR&AC agenda globally.

May 2016 saw London host the AntiCorruption Summit, sponsored and chaired by the then Prime Minister, David Cameron. This was a remarkable event, bringing together heads of state, other senior government representatives, civil society organisations and businesses from around the world. The Summit culminated in a number of commitments on the part of the participating governments to implement a range of anti-corruption measures, in areas including: greater transparency of beneficial ownership; cross-border information sharing; enhanced legislation; more robust law enforcement and better international coordination and cooperation in that sphere; and mutual assistance in the recovery of misappropriated assets. It was my privilege to

MAY 2016 SAW LONDON HOST THE ANTI-CORRUPTION SUMMIT, SPONSORED AND CHAIRED BY THE THEN PRIME MINISTER, DAVID CAMERON. THIS WAS A REMARKABLE EVENT, BRINGING TOGETHER HEADS OF STATE, OTHER SENIOR GOVERNMENT REPRESENTATIVES, CIVIL SOCIETY ORGANISATIONS AND BUSINESSES FROM AROUND THE WORLD. represent ICC UK at the event, but this was just one of a continuing series of interactions between ICC UK and government and other stakeholders before and since the Summit. We have had extensive dialogue with the UK Government, which has encompassed stakeholders from the Cabinet Office, the Home Office, the Foreign and Commonwealth Office, the Department for International Trade, the Department for Exiting the EU and the Ministry of Justice. This has included:

■ Feedback

■ Preparatory

Committee members have given generously of their time, energy and insights to contribute to this dialogue and the feedback from government has been extremely positive. Government is listening, and our input has had a real impact on its thinking and focus. We will be seeking to carry on this constructive engagement to ensure that a reasoned business voice continues to be heard. ■

discussions in the lead-up to the Anti-Corruption Summit; ■ Discussions around business priorities for tackling corruption in overseas markets; ■ Discussions concerning potential government /business collaboration on anti-corruption in new trade promotion services and overseas government projects; ■ Development input of the UK Government’s updated anti-corruption strategy;

on the constitution and operation of the UK’s National Contact Point in relation to the handling of complaints under the OECD guidelines on human rights; ■ Participation in the UK Government’s call for evidence on the design and implementation of the proposed Overseas Entities Beneficial Ownership Register; and ■ A written submission to the Ministry of Justice consultation on the extension of corporate liability for economic crime.

Will Kenyon specialises in the detection, investigation and prevention of fraud, bribery and corruption and other economic crime. His extensive experience covers a wide variety of industries and a varied array of frauds and irregularities; he has also led investigations and recovery actions in relation to a number of high profile insolvency cases. Will has considerable experience in leading cross-border teams on major international assignments; he speaks fluent German and earlier in his career he completed a three year secondment to PwC in Frankfurt, where he helped to establish and build up a successful Forensic Services team.

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Connecting communities, transforming trade

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n light of Brexit, the UK must make sure that it continues to be recognised as a champion of connected communities internationally. The G20 provides a platform to achieve this: by engaging with its global counterparts and business leaders, the UK can send out a strong message that it is invested in making international trade more sustainable and inclusive.

the heart of big policy challenges; as financial experts we offer insights into business and the economy that help to shape policy. As the UK’s industrial strategy sets out; an innovative economy needs the presence of SMEs, skilled labour and investment in digital infrastructure. We believe these three pillars should be prioritised as the UK seeks to build bridges with its G20 counterparts in the year ahead.

Reforming trade markets for a world of strong economies ICAEW’s ambition for the G20 is a world of strong economies, which we believe can only be achieved through the free flow of skilled people, technologies, capital and services. Open markets underpin strong economies as they promote innovation, productivity and competition. When businesses of all sizes can access new markets, employment and economic growth are promoted. This results in higher living standards and increased prosperity. However, members of the G20 must act in concert to address some pressing challenges in our current system. Around the world, the debate over resolving uneven distribution of resources, environmental degradation and stagnant incomes can be addressed by reforming trade. The digital revolution behind globalization also provides challenges: unless the right policies are in place, the potential unemployment resulting from automation poses a threat to global economic stability.

ICAEW believes the U.K should have three priorities for its G20 engagement agenda:

Reclaiming the trade narrative The G20 must not only support those whose jobs at risk of exclusion, but it must also reclaim the narrative on the benefits of trade. Financial stability, macroeconomic policy and investment all depend on healthy trade. But designing a model fit for the 21st century is a colossal task that requires cross-sectorial coordination. Chartered Accountants work at

must invest in more inclusive trade towards SMEs. Thus far, the G20’s principles for Innovative Financial Inclusion Action Plan have provided solid guidelines to increase SMEs’ access to finance. Nonetheless, SMEs continue to report a lack of the appropriate support to thrive in export markets. Good advice on accessing finance, managing cash flows and relations with buyers and sellers is needed to help SMEs ensure sustained long-term growth.

1) Embracing the opportunities of digital E-commerce eliminates spatial and time barriers, reduces costs and enables smaller players to access finance, all of which facilitate trade. However, the digital divide between and within countries remains an obstacle to prosperity. Those without access to broadband or lacking IT skills cannot benefit equally from economic progress. The G20 Digital Economy Task Force provides a platform to address the opportunities and challenges of digital. But greater investment is needed to enable digital inclusion and ecommerce for small businesses. To achieve this, the G20 countries must: invest in broadband infrastructure, capitalise on education in information technologies, design more secure payment solutions and facilitate digital entrepreneurship.

3) Addressing skill shortages to ensure prosperous growth Skills contribute to economic growth through increased productivity. But globalization, digital technologies and demographic shifts are reforming skill needs. In most G20 countries, employers complain of skills shortages and job-seekers report a lack of suitable jobs. The G20 must invest in a comprehensive skills strategy to adapt to a constantly changing economy. Greater action is needed to device systems and tools to anticipate and adapt to skills needs. Life-long learning schemes are essential for job security and productivity enhancement. Innovation also depends on having access to a diverse workforce. Multilateral coordination should lead to more robust, skill-specific immigration policies to promote inclusive business and trade. ■

2) Integrating SMEs into global supply chains Small and medium enterprises are the lifeblood of an economy. They contribute to employment, income generation and export revenues. However, SMEs face a plethora ofchallenges to integrate into global value chains through trade. Economic integration increases competition with imports, which drives foreign investment away from smaller firms and towards established ones. The G20

ICAEW is a world leading professional membership organisation that promotes, develops and supports over 147,000 chartered accountants worldwide. ICAEW provides qualifications and professional development, shares knowledge, insight and technical expertise, and protect the quality and integrity of the accountancy and finance profession.


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he digitalisation mega-trend is realising wide-ranging economic and social implications, and this transformation must be responsibly managed, with the focus of policy-makers on enabling individuals, communities and businesses to adapt and continue to benefit. Critically, harnessing the potential of the digital economy is key to escaping the low growth and low productivity trap in which the global economy is caught. We have reason to be optimistic because progress has been significant, with 40% of people world-wide now connected to networks, compared to just 4% in 1995. By 2030, 8 billion people and 25 billion active “smart” devices will be interconnected in one huge information network1. Yet, today only 25% of individuals are using simple office software, such as word processors and spreadsheets, at work. And among them, over 40 per cent do not have sufficient ICT skills to use these tools effectively. By the same token, firms have seen broadband connectivity rise significantly, to the point that it is almost universal in many G20 economies. Between 2010 and 2014, it rose by almost 30 percentage points in Mexico. At the same time, important differences in ICT adoption and usage exist between large and smaller firms. For example, while broadband access and basic applications such as websites are common among most firms, more advanced applications, such as cloud computing or e-sales are used by a much smaller share of firms. The complexity of digitalisation is stunning, and the policy implications considerable.

This is why in 2016, under the Chinese Presidency, G20 Leaders endorsed the G20 Digital Economy Development and Cooperation Initiative, and then early this year, under Germany’s chairmanship, G20 Ministers responsible for the Digital Economy met for the first time, and endorsed a G20 Roadmap for Digitalisation: Policies for a Digital Future. The OECD supports the G20 digital agenda by sharing its whole of government perspective, which is essential to understanding and responding effectively to this wide ranging transformation. This broad perspective underpinned the recent OECD report to the German Presidency on Key Issues for Digital Transformation in the G20. The latter highlights, in particular, four challenges: Firstly, digitalisation is driving structural change, leading to the demise of sectors, creating new ones and leading to new sources of growth for traditional industries. It also offers economic development opportunities to leapfrog, as witnessed by Kenya’s growing FINTECH hub, or in my own country Mexico, where demand for robots grew by 119% in 20152. In developing countries, nearly 70% of the bottom fifth of the population own a mobile phonei and more households own a mobile phone than have access to electricity or clean water, reflecting accelerating access to economic and social opportunities. Secondly, digitalisation is transforming how we work, where we work, and what skills we need for participation in both the economy and society. Our industry and skills policies must respond by helping users to benefit from new technologies, across their life course. The benefit to consumers and firms is also immense. Digital trade is opening new markets, enhancing opportunities to SMEs in global value chains – enabling them to operate as “mini-multinational” enterprises – and delivering new digitalised goods and services. In 2014, the initial public offering of the Alibaba Group raised USD 25 billion, the largest in the history of the New York Stock Exchange. Indian companies, Snapdeal and Flipcart, are pioneers in innovative platforms, with as much as 70% of their orders made via mobile phonesii. Digitalisation is placing a new premium on cross border data flows. It is transforming how we engage in commerce, which comes with new and unique policy challenges.

Gabriela Ramos

Special Counsellor to the secretary-General and OECD Sherpa

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Finally, the emerging structures of the new digital economy are affecting tax policy. This includes bringing new tools to broaden the tax base and to curtail tax evasion, as well as presenting challenges, such as taxing digital businesses, while simultaneously supporting innovations that we all enjoy and profit from. These are issues which the G20/OECD Base Erosion and Profit Shifting Inclusive Framework are tackling. In this context, we identify 4 critical issues for intensified action: measurement, connectivity, consumers and gender. The policy response to this dynamic, mega-trend must be shaped by facts and evidence informed policy advice. Policy-makers cannot afford to be flying in the dark. To this end, the OECD will be working with the IMF, and other international organisations, to deliver later this year the G20 Action Plan to Improve Measurement of the Digital Economy in Macroeconomic Statistics, as well as to continue work on measuring digital trade and addressing specific digital economy measurement challenges. This will deliver the G20 Leaders’ request to improve our understanding of the digital economy, and provide valuable insights on how best to shape policy responses. Connectivity will underpin inclusive growth. Some G20 economies have almost ubiquitous Internet access for households, whilst others lag — the range is from 99% down to 20%iii. The OECD welcomes the G20 commitment to continue analysing policies designed to extend coverage to underserved places, individuals and businesses, and to discuss ways on how to use digital technologies to overcome wealth gaps and income disparities. High speed Internet access is essential for social and economic connectivity, as it enables participation of individuals and businesses worldwide. The consumer dynamics are astonishing. In the last decade, the share of e commerce as a percentage of overall retail has nearly tripled in the United Statesiv. But the Internet is also enhancing vulnerability of consumers -and firms -- to cybersecurity risks. The OECD first put this issue on the table in 1998, with a Ministers’ Declaration on Consumer Protection for Electronic Commerce, and subsequently developed OECD recommendations on digital security risk management (2015). We will build on this by helping to develop a set of G20 best practices for online consumers.

Finally, equipping more than half of the population -- women and girls -- with a wide digital skill set, increasing their participation in related fields of study (STEM in particular, and ITC), and engaging in a sector that is male dominated is fundamental to women’s empowerment. The OECD report shows the share of women working in this field is typically one-fifth to one third that of menv. To address this, gender stereotyping must be avoided from an early age. An agenda that enhances women’s participation in the new digital economy is fundamental to meeting the G20 Leaders’ commitment to reduce the gender gap in workforce participation by 25 per cent by 2025, and to delivering inclusive growth. The G20 Roadmap — accompanied by the OECD’s two-year project “Going Digital” — will underpin a multi-year G20 digital agenda. Together, the G20 and the OECD are set to embrace the digital era as a long term endeavor, to better understand its promises, to respond to its pressure points and to design better digital policies for stronger and more inclusive growth.



OECD (2015), Data-Driven Innovation: Big Data for Growth and Well-Being, OECD Publishing, Paris, http://dx.doi.org/10.1787/9789264229358-en El Pais, “Beyond Trump : the hidden threat robots pose to the Mexican economy”, http://mediareview2.oecd.org/Articles/DisplayArticle.aspx?ArticleKey=189646 i The World Bank (2016), World Development Report 2016: Digital Dividends, International Bank of Reconstruction and Development / The World Bank, Washington DC. ii Meeker, M. (2015), "Internet Trends", www.kpcb.com/blog/2015-internet-trends iii OECD (2017), Key Issues for Digital Transformation in the G20, OECD, Paris, p. 23 (Fig 5). iv United States Department of Commerce (2016), "Quarterly Retail E-commerce Sales, 2nd Quarter 2016", United States Department of Commerce, www.census.gov/retail/mrts/www/data/pdf/ec_current.pdf v OECD (2017), Key Issues for Digital Transformation in the G20, OECD, Paris, p. 106 (Fig 37). www.oecd.org/G20/key-issues-for-digital-transformation-in-the-G20.pdf 2

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How Digital Economy Tools

Can Assist To Rebalance The Global Economy CAPTAIN SAMUEL SALLOUM - GCEL CO-CHAIRMAN


he Digital Economy has gained much attention by policy makers throughout the global arena since it promises to be the catalyst in today’s 21st century technology era to drive a new wave of global economic growth. At the same time, it is the Technology Industry, our trusted 24-hour service providers, that have the capabilities and know-how to deliver upon policy makers’ commitments thereby implementing what the world’s citizens demand. Therefore, it is important to know where the technology industry stands today and how it can deliver what technology makes possible to boost our global economy Today, we are living in complex, fast moving times where there are multiple business transformation triggers in play at the same time. The world is facing significant forces such as globalization, modifications in trade policies, shifts in technology, excess production capacity and changes in customer demand. The last two forces are increasingly affected by the changing demographics in the world.

The rise of Google and Facebook over the past 15 years is a testament to not only the power of innovation, but also the need to constantly change to stay ahead of disruptive competition. However, many businesses suffer from “status quo bias” or the preference to keep doing what they have always done, either through the fear of change or because current practices and behaviors are moderately successful, so why change?


As mentioned by Ms. Ramos, harnessing the potential of the digital economy is key to escaping the low growth and low productivity trap in which the global economy is caught. In this regard, the technology industry can drive a tremendous social impact in today’s interdependent global economy by helping to de-risk trade and build the purchasing power of the mid and low income countries towards rebalancing the world economy. Otherwise, who will be left to buy the high technology goods and services produced by the high income countries during the next 20 to 30 years? Even today the technology industry is battling a myriad of challenges towards meeting the needs of their customers including: poor top line revenue growth due to customers’ tight IT budgets, restrictive M&A and IPO markets, stringent R&D spending and lack of capital. Marketing budgets are under the greatest pressure with sales forces being culled. Even the perennial technology leaders have recently announced job cuts. To revive their reduced revenue and profit levels, information technology services companies are conducting more research to develop new processes, products and business models to overcome the aforementioned challenges. Accordingly, these firms are focusing on innovations such as: software as a service (SaaS), cloud IT, off shoring, digital convergence and

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continued consolidation in the service provider market. During the last few years, the industry has been quite active in the areas of infrastructure standardization, virtualization and consolidation.

Is important to note that one of the most dangerous phrases in the English language is “we’ve always done things that way” and this thinking has led to some of the greatest collapses of companies in the past 20 years, such as Borders, Blockbuster and Eastman Kodak.

In view of the ongoing market challenges, the technology industry seeks a new wave of innovation that maximizes on what technology makes possible today in order to increase their customers’ efficiencies, reduce their costs and assist them in gaining greater market share. In doing so, the technology industry will generate more revenues and increase the return on investment for their own shareholders. SMEs represent up to 80% of employment in many countries. These enterprises are the future wealth generators of the world. While the technology sector has ingeniously created innovative and highly sophisticated vertical supply chain solutions used by many companies globally, these systems are costly and typically out of the reach of most trade participants causing them to be excluded from global value chains. In fact, 90.4% of the global value chain participants do not have a vertical system. However, cost is not the only hindrance to adopting technology. For example, in India which has a low cost technology environment, the use of vertical systems is low because they have not been built to meet the demanding high quality information requirements of today’s fast paced global value chains that manage the horizontal process of trade. Since trade is a horizontal process involving 19 industry trade clusters, there is a tremendous opportunity for the world’s technology firms to partner together under one roof and develop new processes and business models towards building the applications demanded by the real economy participants at the ground level.

By digitally connecting large, medium and small size companies through a horizontal trade platform, we can create an ecosystem that harnesses the huge volume of big data within the global B2B arena. This will then provide the seamless flow of validated, real time high quality information required by trade participants to make the right business decisions at the right time in the 21st century era. Digital trade will open new markets and enhance opportunities to all businesses, especially for SMEs, in global value chains.


The creation of high quality information will allow trade participants to reduce operating costs and de-risk doing business between the high, mid and low income countries. This de-risking effect will ease access to finance and insurance as well as create new market opportunities. Such a platform must also be provided free of cost to all trade participants through a new business model that incentivizes their participation, yet is able to sustain the deployment activities and handsomely reward the technology industry for their innovations. The immense market potential for IT services companies offered by a horizontal platform will afford the ability to provide what their vertical systems customers have demanded for years, point-to-world integration. This increases the ability for IT services companies to sell more vertical system modules to their customers. In addition, the IT services companies can generate a significant source of new revenues, through a unique business model, by delivering thousands of applications for free, much like the apps provided through our smart phones today. Technology companies need to take a fresh look and think ‘out of the box” as to how they do business in order to capitalize on the opportunities that lie ahead in the ever changing global marketplace. By providing the required digital tools for all to use for free through a sustainable business model, we can increase trade efficiency and transparency that will enlarge the global economic pie towards achieving sustainable economic growth. This approach will benefit all industries involved in trade - commerce, finance, insurance and technology - driving greater returns for their shareholders as well as rebalancing the global economy. Considering the interdependency of our global economy we must all strive to create productive communities by committing to business excellence setting the foundation for a prosperous tomorrow. As stated by Ms. Ramos, the G20 and the OECD are set to embrace the digital era as a long-term endeavor. Therefore, now it is incumbent upon the technology industry to ensure the cost of technology does not hinder the economic growth of our world.

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Following more than 10 years of R&D, global experts from several fields including trade development, technology, and finance have contributed their collective expertise towards achieving sustained economic growth by digitizing the USD 140 trillion B2B market place. These exhaustive efforts have resulted in the creation of the required Global Solution Foundation to connect the strengths of the high, mid and low income countries towards rebalancing our global economy and creating economic prosperity for all. This Global Solution Foundation encompasses the following four main pillars: The first pillar includes defined and achievable targets that are necessary to create a huge win-win value proposition across all world communities to meet the ambitions of their citizens. Specific benefits of a tangible economic development solution that supports the United Nations’ Sustainable Development Goals include but are are not limited to: o Increasing the world’s GDP by 17% in 2030 o Creating nearly 300 million manufacturing, agriculture and service o

jobs Generating an annual USD 1 trillion SME Grant Fund to build SME capacity

The second pillar is a clear roadmap based on the economic strengths and demographics of each world region to reach the defined targets. In order to jump start economic growth, we must have a global campaign with a regional implementation program that includes a clear roadmap indicating the way forward from where we stand today towards a prosperous future in our time and for generations to come. To reach the defined targets, pan-regional organizations entrusted by more than 150 countries including the Organization of American States, Organization of Islamic Cooperation, African Union, League of Arab States, as well as other leading organizations in China, India, and other G20 nations have published economic roadmaps, conducted national trade efficiency assessments and executed agreements to deploy a Digital Economy Platform delivering the defined benefits throughout the Americas, Asia, Europe and Middle East / Africa.

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The third pillar encompasses the required digital tools delivered by a trusted network from around the globe for use on the roadmap to reach the defined targets. The tools must be provided free of cost to the end user and at the same time delivered by the technology industry maximizing on what technology makes possible today and in the future. These tools include the deployment of a Digital Economy Platform that has been defined by the real economy participants at the ground level and where the policy makers have identified the importance of today’s 21st century technology to create dynamic, cooperative and inclusive ecosystems. Finally, the fourth pillar is the global consensus of the foregoing that can be viewed from the following perspectives: - Global Policy Adoption: G20 leaders agree that the Digital Economy must be the focus of our efforts to re-energize the global economy. - Global Deployment: 75% of the world’s citizens through their panregional organizations entrusted to implement regional economic development plans have executed agreements and published economic roadmaps to deploy the Digital Economy Platform. - End-User: Trade participants at the ground level representing 78% of the world’s GDP have defined the required digital tools to reduce their trade costs and increase trade. This is evidenced by the G20 Nations’ Case Study conducted by 71 ministries, NGOs/IGOs and private sector experts, wherein 90% of respondents stated that they lack digital integration into the global value chains and 94% have commonly agreed as to the digital tools they need to do a better job. - Technology Industry: 26 of the world’s leading technology firms have executed strategic agreements as a first step to be selected through an equal opportunity process to work together under one roof to deploy the defined tools. These firms recognize the value of the required Digital Economy Platform solution, realize they cannot deploy the solution alone and can more than double their earnings. It is important to note that since trade is of national security importance for any nation, it is impossible for one country or one technology company, no matter how big they are, to deploy the Digital Economy on a global scale and maintain continuous and sustainable access, while offsetting monopolistic and geopolitical concerns.

The deployment of the required solution must include the participation of all forms of organizations, working in concert together capitalizing on each organization’s capabilities and jurisdiction. This collaborative effort must include an independent global monitoring mechanism to offset geopolitical and monopolistic concerns while at the same time ensuring rapid global deployment, providing benefits to all participants in the B2B marketplace. In addition, since information is the currency of the future, the privacy and security of trade data must be protected and securely exchanged. Therefore, the deployment of a digital platform must embrace a Global Data Security Standard that includes: a Consortium of Globally Balanced Ownership, a Council of Fiduciary Governance, and a Committee of Technology Governance Board Experts, together offsetting geopolitical and monopolistic concerns. This is further coupled with a Controlled Segregated Technology Development process and Continuous and Comprehensive Audits to ensure data can be safely exchanged throughout the world with confidence. All of the aforementioned represent a multi-layered mechanism ensuring that data security is maintained and that individuals’ and companies’ data privacy is protected. In summary, the Global Solution Foundation will unleash a new era of 21st century trade efficiency through a global economic development program with defined targets, multiple economic growth road maps that address the needs of any region, country or business, thus rebalancing the global economy. With the needed digital tools validated through a global consensus and delivered by a trusted network of the world’s top technology firms, we can achieve sustainable economic growth by -

Connecting The Strengths Of The World Community Creating Wellbeing Across Humanity

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ICC United Kingdom’s Official G20 Publication

Inequality Authored by: Sophie Dembinski

Bridge the gaps for more inclusive and sustainable growth


hen world leaders meet in Hamburg for the G20 summit in July, it will mark the close of a difficult year for many G20 economies. Germany’s G20 presidency has straddled pivotal elections, referendums and rising tides of populism and economic nationalism around the world. Much may have been made of the so called winners and losers of globalisation, but real progress must now be made to bridge the widening socio-economic disparities in wealth that drive anti-globalisation sentiments. Looking

ahead to Argentina, G20 policy and business leaders should focus on addressing inequality at home and abroad by delivering effective policies that distribute the economic gains of globalisation more fairly and build more inclusive and sustainable economies. In 2016, the 62 richest people in the world controlled more wealth than the poorest 50%. According to Oxfam, by 2017, that figure had shrunk from 62 to just 8. Trade may have helped to pull millions out of extreme poverty but over the past 30 years, income inequality has risen sharply in


developed countries and social mobility has dropped. In the UK, 1/8 workers live in poverty and income inequality is significantly higher than it was in the late 1970s. A YouGov study found that 63% of those with household incomes below £20,000 a year voted to leave the EU, compared with 35% of those whose household income was above £60,000. Similarly, in the US, states with higher income inequality were more likely to vote for Donald Trump. Rising inequality, whether real or perceived, contributes to people and communities feeling ‘left behind’. G20 leaders bemused by populist trends must focus on ensuring that larger proportions of the population benefit from globalisation. G20 countries cover 85% of the world’s GDP and 2/3 of its population. Over the years, the G20 has made strides to improve living conditions around the world and coordinate more stringent international financial regulations and taxation. Despite recent, and unprecedented, divisions among leaders on the G20 statement to ‘resist all forms of protectionism’, G20 leadership when united under common values and vision, is uniquely placed to set the course for more inclusive and sustainable economic growth. Businesses can and should step up, particularly at times when leadership in global governance falters. In a context where businesses increasingly decide the terms of trade, they can upgrade their corporate responsibility programmes and commit to delivering the highest of standards, not the lowest. Business can also amplify and strengthen the work of governments and organisations like the UN to achieve ambitious, globally agreed initiatives such as the Sustainable Development Goals and Paris Climate Agreement, which both rebuilds trust and confidence in global governance and improve global standards of living. Inequality and socio-economic disparities will continue to play out in political spheres around the globe until real efforts are made to deliver more sustainable solutions to economic challenges. The opportunity for businesses and policy makers to proactively address and engage in these issues is one that we simply cannot afford to miss. ■

Sophie Dembinski is head of policy at the ICC in the UK and responsible for relations with business, government and international organizations. Previously, she worked on EU-US and Asia relations at the German Marshall Fund of the United States (GMF) in Brussels and continues to serve as the UK coordinator for GMF’s flagship leadership programme.



ICC’s UK Rising Stars programmes support young, diverse professionals from a range of sectors to excel in leadership roles by providing opportunities to develop international credentials, attend world class events, build global networks and have access to ICC’s leading experts.

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YOUNG ARBITRATION FORUM …a leading forum to network with young and experienced practitioners from around the world, exchange best practice, debate key issues of interest in international arbitration and discuss career development.

YOUNG FINANCE FORUM …is a must for the rising stars of trade finance wanting to learn from the leaders of their industry and be part of an international network.

YOUNG COMPETITION NETWORK …a great opportunity to network, exchange and develop understanding of the pragmatic application of global antitrust laws with senior practitioners and thought leaders.

Participate in world-class events Forge partnerships and join a global network Share best practice and improve industry ties Access to leading experts Write for ICC blogs and publications Discounted rates for ICC’s UK events

Ania Farren YAF Coordinator; Partner, Berwin Leighton Paisner (BLP) Iain Quirk Arbitration Consultant, ICC; Barrister, Essex Court Chambers

Anne Miglorine UK Banking Vice Chair, ICC; Director, Consiglia International Laura Feldman YFF Coordinator; Senior Associate, Eversheds Sutherland

Shaha El-Sheemy YCN Coordinator; Associate, Norton Rose Fulbright Anne Riley UK Competition Chair, ICC; Associate General Counsel, Shell

Please contact advocacy@iccwbo.uk for more information

ICC United Kingdom’s Official G20 Publication

IP & Innovation Authored by: Allen Dixon

Intellectual Property: Vital Protections Promoting Healthy Trade Economies benefit from effective IP standards regardless of their trade priorities. The ICC has long supported vigorous international trade as a benefit both to the economy and society— helping to spur continuing innovation and the most competitive prices for the goods and services that we all want and need.


n an era when free-trade deals are sometimes protested in the streets, and economies like the UK and the US are considering domestic preferences; effective intellectual property (IP) protections remain vital for innovation, businesses small and large, the economy, consumers and society. IP and other intangibles now comprise as much as 70% of the assets of most of the world’s leading companies, and can often represent the sole value of innovative start-ups and other small companies. It is thus important to keep in mind how IP functions as an essential element of innovation and economic growth, regardless of how countries and economic blocs balance their trade policies and priorities. 1. Intellectual property promotes innovation: The ICC’s overview of the important role of IP, Intellectual Property: Powerhouse for Innovation and Economic Growth, reviews the major studies and evidence of the benefits of intellectual property. Among the evidence reviewed, the study details how effective IP protection is linked to higher investment in research and development

—a 25% to 35% R&D uplift in the pharmaceutical sector, for example. IP also helps companies receive greater returns on their investments, promotes technology transfers, and provides a firm foundation that encourages the sharing, publication and licensing of technologies. 2. Intellectual property promotes the economy: Sectors that rely on IPR protection are substantial contributors to virtually every economy. US Commerce Department and EU IP Office reports in late 2016 found that 38%-42% of these economies’ GDPs is attributable to IP-intensive industries. Even in developing countries, this figure can be 2%-6% of GDP in the copyright sectors alone, with foreign direct investment (FDI) in these countries improving by 2%-8% with even a 1% improvement in IP protection. 3. Intellectual property helps companies small and large: Firms of all sizes use IP to help develop, value, conduct trade in, and benefit from their works and inventions. Firms that rely on IP generally succeed better – with higher productivity (10%-30% higher in the UK, for example), higher income, higher wages, greater growth, and higher market values – than those that do not. 4. Intellectual property benefits consumers: Besides being an important guarantee of consumer trust and a first line of defence against defective and even harmful


counterfeits, IP protections support the continuous development of new and innovative, competitive products and services that benefit all consumers. 5. Intellectual property benefits society: IP is helping to support developments that address many of society’s most important needs, from clean energy to health care to a truly ‘digital economy’. By contrast, poor IP protections or enforcement, resulting in greater counterfeiting and piracy, simply undermine such developments. Many of the world’s leaders from all sorts of economies have publicly recognised these benefits of IP, particularly for the economy and trade. For example, UK Prime Minister Theresa May, in signing a new trade deal with India in late 2016, mentioned better IP protections as one of the ways that the UK and India were working to “make it easier to do business in India”. The European Commission has emphasised that “the protection and enforcement of intellectual property go to the heart of the EU’s ability to compete in the global economy”. The effective protection of intellectual property is thus likely to maintain its vital role in promoting innovation and economic growth, even as the world’s economies and trading blocs take stock of their trade priorities and practices. ■ For more information or to write for the ICC, please contact advocacy@iccwbo.uk

Allen Dixon is a leading lawyer and consultant in the intellectual property and information technology field, and has advised high technology and traditional content companies and industries in various capacities on three continents for more than 25 years. He is also director of the IP awareness initiative IdeasMatter.com.

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ICC United Kingdom’s Official G20 Publication

Smart Energy Authored by: Simon Hobday

Harnessing the smart energy revolution


nergy costs are a major operational overhead for many businesses and one which, historically, they have been unable to manage or minimise. This is changing thanks to a smart energy revolution that allows them both to reduce their energy bills and to exploit the revenue from energy generation. So what is “smart energy”? The term encompasses “smart” gas and thermal grids, as well as electricity, and the synergies between them. In its simplest form, smart energy is the generation, distribution and consumption of energy in an intelligent, integrated way. The UK’s smart energy revolution is taking place against the backdrop of the decentralisation of electricity generation, alongside the integration of low carbon generation. This transition entails matching variable renewable generation with demand, using sophisticated IT systems to balance the grid. The tools of the revolution include smart meters, innovative renewable generation and energy storage technologies, demand reduction mechanisms, “virtual” power stations and a range of business models and instruments. Used together, these can enable generation and demand to be balanced efficiently, whilst providing businesses with options to cut energy usage and cost. There are various ways in which businesses outside the energy sector can take commercial advantage of the smart energy revolution. One such way relates to energy efficiency. This is about much more than simply insulating an office or factory and can encompass demand reduction, voltage optimisation, lower energy use appliances and sophisticated control systems. Energy performance contracts, where service providers are remunerated or incentivised according to savings achieved by the customer, can provide businesses with a managed system for cutting energy use and cost. Then there is own energy generation. Generation from renewable sources has grown exponentially in the UK in recent years and the introduction of Feed-in Tariffs in 2010 prompted many businesses to 52 ❙ iccwbo.uk

install solar PV generation facilities on their premises. Despite reductions in renewables subsidies, falling installation costs and growing demand for grid support services mean that on-site renewable generation remains a viable option. Private wire schemes involve an electricity network outside a regulated distribution or transmission grid. Where electricity is provided by a generator to a customer via private wires (without that electricity being conveyed through the grid) various grid use-of-system charges, lines losses and other electricity industry charges are avoided. Another increasingly popular means by which a generator and a customer, unconnected by a private wire, can buy and sell power to each other is so-called sleeving. As the power generated is fed into the grid, sleeving does not have many of the benefits of private wires plus it requires the

involvement of a licensed supplier to deal with grid requirements. However, it does provide for transparent pricing. National Grid has a variety of grid support services which include frequency response contracts, under which the service provider can reduce demand or increase generation by changing its power output in return for availability and utilisation fees; short-term operating reserve contracts, which allow it to draw on reserve electricity when demand spikes occur; and capacity market contracts, which pay electricity capacity providers for secure supply. Finally, the increasing sophistication of metering, IT and trading systems has given rise to a variety of energy purchase products for businesses seeking more advance visibility on, and a reduction in, energy costs. Customers can link the price of purchases to specified indices,


to fix and unfix prices for blocks of power for periods of time in advance, and to offset own generation of power against consumption across multiple sites.Whatever route they choose, one thing will remain constant:

businesses need to use energy and to monitor its consumption and cost. Now is the time to explore the many sophisticated new methods of doing this by joining the smart energy revolution. ■

Simon Hobday is an energy Partner at international legal practice Osborne Clarke and an expert on smart cities. He specialises in the commercial and regulatory energy sector. He advises energy companies, regulators, governments and commercial customers on regulatory issues and projects, with a key focus on smart grid, power management and decentralised energy projects. He is a director of the Association of Decentralised Energy and a member of its CHP Policy Working Group and the ADE Task Force on post 2020 heat network arrangements and is a Director of the Heat Trust. He is a member of the Investor Confidence Project Europe Steering Group, the Advisory Board for Penwell’s PowerGen Europe Conference and the Energy Institute.

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ICC United Kingdom’s Official G20 Publication

Tax Authored by: Heather Self

Dealing with tax challenges as a result of Brexit


ustoms duties will be the biggest Brexit tax challenge for those importing and exporting goods between the UK and the remainder of the EU. There could also be implications for imports and exports from and to third countries, as the UK is likely to lose access to the EU’s Free Trade Agreements with third countries. We simply do not know at this stage where negotiations will end up and what (if any) additional tariffs will result. What is extremely likely, however, is that businesses will incur increased compliance costs and may need to upgrade systems and retrain staff. Businesses should be budgeting for increased costs in this area. Assuming the UK will leave the customs union - as seems to be the current plan tariffs are only likely to be sorted out when future trade deals are negotiated. This is likely to take a considerable amount of time

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so this is not an area where businesses can realistically expect early clarity. However, businesses across the EU should already be considering the impact on existing contracts of possible increases in import tariffs. Can additional costs be passed on to others or will they have to be borne by the business? Make sure that new arrangements apportion the risk appropriately. Leaving the EU will give the UK government the opportunity to reconsider its policy in relation to VAT. At present the UK is obliged to maintain a VAT system complying with EU law. Post Brexit that obligation will fall away. However, VAT is unlikely to be abolished as it raises significant revenues. It is also unlikely that it will be radically changed as businesses have become accustomed to the way the tax operates and changing it significantly for no tangible benefit would be very unpopular. Over time

we will probably see a divergence from EU VAT, particularly in areas such as financial services and outsourcing, where some aspects of EU case law do not necessarily work well for UK businesses (or, in some cases, for HM Revenue & Customs). Businesses will need to consider whether additional VAT registrations in EU member states could be required as a result of the UK leaving the VAT union. Businesses with VAT or other EU based litigation proceeding in the tribunals and courts (particularly repayment claims) will be concerned about the transitional issues regarding the role of the Court of Justice of the European Union (CJEU). The UK government has said that CJEU case law pre-Brexit will continue to be as binding as a Supreme Court decision, but we do not know what will happen as regards UK cases in the CJEU pipeline on the day the UK leaves the

EU or what will happen as regards disputes after Brexit as to the meaning of EU law pre-Brexit. For UK direct taxes such as corporation tax, Brexit will change little as the taxes are purely domestic. Although, businesses that rely on the Parent-Subsidiary Directive or the Interest and Royalties Directive could see their overseas tax bill increase, if those withholding taxes are not independently eliminated by the relevant double tax treaties. Corporation tax is due to reduce to 17% in 2020, and the previous Conservative government has committed to keeping the rate low (although Labour has said that it may raise corporate taxes). It could be reduced further to stimulate foreign direct investment. However, the UK remains committed to the OECD’s project to reduce international tax avoidance. There are therefore limits to the extent to which


it will be able to change the UK tax code as it applies to cross-border situations. So, considerable uncertainty lies ahead, particularly as regards customs duties and tariffs, but businesses can begin to prepare so that Brexit is not a step into the dark. ■

Heather Self is a Partner* at Pinsent Masons with over 30 years of experience in tax. She has been Group Tax Director at Scottish Power, where she advised on numerous corporate transactions, including the $5bn disposal of the regulated US energy business. She also worked at HMRC on complex disputes with FTSE 100 companies, and was a specialist adviser to the utilities sector, where she was involved in policy issues on energy generation and renewables. She is a member of the CBI Tax Committee and the ICC Taxation Committee and a former Chairman of the CIOT Technical committee. While at HMRC, she was a member of the joint working group on the development of the new Controlled Foreign Companies (CFC) regime.

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ICC United Kingdom’s Official G20 Publication

Digitisation Authored by: Alexander Goulandris

Enabling paperless trade


n the drive for simplicity and automation in trade, companies and banks are increasingly turning to digitisation. In the last few years, eCommerce trade has grown from a few million dollars to over $1.7T of trade in 2016, across platforms such as eBay, Alibaba, Amazon, in US, EU and China. But what does it mean and why should G20 leaders take note? Digitisation in trade and trade finance brings significant operational and financial benefits through automation whilst providing greater compliance and transparency. IATA estimate that eDocs will reduce export paper processes by up to 44%1 when fully digitized. The digitisation of things also known as the Internet of Things (IoT), increasingly offers real-time cargo information and in

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turn a reduction in risk for buyers and banks. As digitisation efforts bear fruit, the risk (and cost) of trade will reduce, in turn allowing for more trade finance and more trade. As financial inclusion bubbles to the top of policy imperatives, enabling digital trade should be a critical initiative for all G20 leaders. In addition, real-time digital document analysis combined with artificial intelligence learning offers a powerful tool in identifying terrorism financing flows and dual use goods shipments which are in contravention of export controls. There are several different levers which can be pulled to enable digital trade as follows: Acceptance: ensuring that relevant arms of Government, such as the Central Bank,

Customs, Health and Tax Authorities, as necessary, accept electronic trade documentation as an alternative to paper. In addition, where digitisation projects are undergoing such as the IPPC ePhyto Hub Project2 , it is critical for Governments to participate to ensure their global success. Adoption of the World Customs Organization Data Model as part of a Single Window project will also greatly facilitate digital trade, as will the full implementation of the WTO Trade Facilitation Agreement (TFA) once more member states support and accept it. Incentives: the transition to digital trade is a significant endeavour for companies and banks alike. Incentivizing trade participants to make the investment will accelerate the transition and in turn deliver the benefits


Alexander Goulandris is the co-founder & CEO of essDOCS, the leading enabler of paperless trade. Under his stewardship, essDOCS has built a reputation for delivering innovative solutions for several of the most complicated paper problems in global trade, and was the first company to build an industry-wide accepted electronic Bill of Lading (eB/L) solution.

to GDP and financial inclusion. Possible incentives that G20 countries could offer include: (i) blue line customs clearance for cargos shipped under digital documents; (ii) reduction in capital adequacy requirements for credit provided under a digital trade asset; (iii) tax credits for companies engaged in digital trade transformation; and/or (iv) tax credits or grants for digital trade providers.

Model Law on Electronic Transferrable Records (due to be adopted in July 2017), which deals with all negotiable instruments. In addition, G20 countries should focus on promoting technological neutrality, i.e. no requirements for local digital signature providers or local storing of data, as that negatively impacts the suitability of those rules for international trade.

Legislation: one key complexity in digital trade, is the enforceability of electronic title documents, such as bills of lading, warehouse warrants, bills of exchange and promissory notes, without the need for a complex multi-partite legal agreement. G20 leaders can assist by ratifying for example the Rotterdam Rules which enables electronic bills of lading, or the upcoming UNCITRAL

In summary, Digital Trade will provide enormous benefits, whether focused on domestic or international trade. The support of G20 leaders is important in accelerating this transition. ■ Source: http://www.iata.org/whatwedo/cargo/e/ Documents/full-case-study-kn.pdf. 2 Learn more at: http://www.fao.org/news/ story/en/item/281075/icode/ 1

Alexander started his career as a maritime lawyer with Holman Fenwick & Willan in London, Athens and Hong Kong. In January 2003, he co-founded essDOCS with the aim of eliminating the significant inefficiencies resulting from the use of paper documentation in shipping, trade and trade finance. Today, he is primarily responsible for the company’s strategic direction. He is admitted to the Supreme Court of England and Wales, the US Federal District Courts of the Southern and Eastern Districts of New York and the New York State Supreme Court, and is a member of the American Bar Association, the Law Society of England & Wales and the ICC Banking Commission Advisory Board.

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ICC United Kingdom’s Official G20 Publication

Annual Conference

UK Annual Trade Finance Conference: Regulation, digitisation and standardisation – the hot topics of trade finance After an eventful year for trade, the International Chamber of Commerce (ICC) United Kingdom’s Annual Trade Conference at Allen & Overy LLP examined the impacts, challenges and opportunities for trade finance


he recent ICC United Kingdom Annual Trade Finance Conference provided a forum for discussion between leading trade finance figures in the UK and Europe, examining the new challenges and opportunities facing the global trade finance industry. Regulation, digitisation, and standardisation were the key topics of the day – with the need to respond to growing protectionism an additional seasoning throughout.

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An uncertain environment Political events throughout 2016 have caused trade to shoot to the top of almost every government’s agenda. The speakers agreed that we are operating in times of uncertainty, with mounting protectionism evident in Europe and the US, as well as changes underway in the regulatory, political and financial landscapes. In his opening keynote speech, Douglas Flint, Group Chairman of HSBC Holdings, commented on the current global economic landscape: “At an already fragile time for the global economy, the institutions that underpin the rules-based economic order are being challenged. For advocates of open markets and free trade, there is a concern as to whether we are at somewhat of a tipping

point for the world’s approach to globalisation. Constraints on trade agreements, or trade financing, are problematic for the global economy.” In this environment, international organisations and governments need to help combat the anti-trade sentiment and refute the myths put forward about trade. On Brexit No trade focused event taking place in the UK in 2016 could fail to discuss the impact of Brexit. In the UK, general political and economic uncertainty has impacted longterm plans for many businesses. “There is obviously a lot of uncertainty in the market, with many businesses hesitant to make long-term decisions, and we have seen

some slowdown in our clients committing to long-term contracts. Banks need to work together to help clients better understand the benefits of trading internationally and create stronger opportunities to export,” said Adrian Walker, Managing Director, Head of Global Transaction Banking, Lloyds Bank Commercial Banking. For Adam Sopher, Co-founder and Director of Joe and Seph’s – a gourmet popcorn company – the immediate effects of the UK’s decision to leave the EU were evident: “We had sugar and chocolate prices go up 5% and 15% respectively. But while our import costs have gone through the roof, we now have a huge opportunity to export even more.” What is important to remember is that the UK has a remarkable history as a trading nation, and is currently the world’s fifthbiggest economy and sixth-largest exporter, with overseas sales making up nearly a third of its GDP. The UK is also a global leader in many of the world’s most in-demand sectors, with a long tradition of innovation and excellence. “Sometimes I think we underestimate the sheer respect and admiration for British goods and our reputation,” said Tim Hinton, Managing Director of Mid Markets and SME Banking, Lloyds Bank. “There is high demand for British products and we can tap into these opportunities. Brexit will hopefully encourage British businesses to think more

What is keeping you awake at night? 32 ■ Sluggish Global Growth ■ Protectionism/Political Risk ■ Disruption from Technology and Change ■ Regulatory Compliance/Risk




conference audience agreed, with most voting “Regulatory compliance/risk” as what “keeps them awake at night”. Such is the impediment caused by such measures to trade finance that many at the event – speakers and audience alike – acknowledge it to be at least partly responsible for the global shortage of trade finance, currently estimated at US$1.6 trillion by the Asian Development Bank. “It is obvious that regulation is causing a slowdown in the ability to quickly finance opportunities”, said Niels de Ru, Partner, Allen & Overy, Amsterdam. “Instead of the one–size- fits-all approach, regulators need to incentivise banks to mitigate risk in ways that enable them to structure credit facilities for their clients.” What’s more, there is a need for clarity around the implementation of compliance measures, particularly with regard to what exactly is required for different rules. “Banks that were most affected by the financial crisis are taking a much stricter Oiling the wheels of trade interpretation of compliance rules than But for companies to expand into new perhaps some of the other banks are. The markets, they need financing. Trade finance is clearly crucial in oiling the wheels of global divergence of approaches is certainly in need of addressing,” said Andy Blacksell, Head trade – without it, many businesses wouldn’t of Underwriting Policy and Products, UKEF. be able to buy and sell the large volumes of Fortunately, there are steps that can be material needed every day. taken to provide clarity around compliance. “At the moment we estimate trade finance “Firstly, we need to create a practical, trade to support around two-thirds of world trade,” specific rule-book for KYC implementation,” commented Dr Marc Auboin, Counsellor in the Economic Research and Statistics Division, explained Auboin. “Secondly, we need to › World Trade Organization (WTO). “It’s a very liquid market. If you think that short term capital flows around the world are US$30 trillion across the year, a third of that is trade finance.” Christophe Salmon, Group CFO, Trafigura Group, said: “For us, transaction-specific trade finance provides our working capital, all our daily operations, and the commercial relationships that drive our business. They represent the dual foundation of trust and liquidity, without which we would cease to function.” about global markets beyond Europe.” “The government is sending a very clear message: Britain is open for business. While developed markets like the EU and the US remain the UK’s largest trading partners, there are huge opportunities in fastergrowing markets,” said Louis Taylor, Chief Executive, UKEF. “In total, there are 52 markets that the Department for International Trade has identified as holding the greatest potential for UK exporters – 36 of which are not in the EU – and these countries all represent well over £200 billion of potential business for UK exporters,” Taylor added. The international trade landscape is still difficult to navigate for many businesses however, and planning ahead is key. There is more that could – and should – be done to facilitate cross-border trade, with huge opportunities to expand and diversify the UK’s exports.

Policy regulations and implications for growth Yet, there are a number of trends having a detrimental effect on trade finance. For example, regulation and compliance requirements – while deemed necessary for a stable and healthy financial system – are widely perceived to have presented a hurdle for the industry. Data from the ICC’s latest Global Survey on Trade Finance supports this, with 90% of respondents citing the cost and complexity of complying with Anti-Money Laundering (AML) and Know Your Customer (KYC) requirements as significant barriers to the provision of trade finance, while 77% also cited regulatory requirements. The Annual Trade Finance ❙ 59

ICC United Kingdom’s Official G20 Publication

Annual Conference

› distinguish between the implementation of remittances and trade finance. At the present moment the two are pretty much considered one and the same, and there is much more capacity put into remittances than in trade finance – that needs to be addressed.” And it is crucial that such steps, or similar measures, are taken to make regulatory and compliance policies more trade financefriendly. Furthermore, as David Bischof, Senior Policy Manager at ICC Banking Commission, pointed out – this gap is not evenly spread, with SMEs feeling the effects. “The SME sector is by far the sector that approaches banks and requests trade finance the most. At the same time, almost two-thirds of their requests are rejected,” said Bischof. A crucial way to help address the trade finance gap and encourage support for SMEs – particularly in emerging markets – is through achieving an even more risk-aligned treatment of trade finance. This is precisely why the ICC Banking Commission first initiated the Trade Register project in 2009, aiming to gather data on the default risks from member banks. With these results, ICC tries to elucidate the low risk nature of trade

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finance each year with the Basel Committee and other regulators. The issue of declining trade finance is a cause for concern, and the trade finance industry needs to adapt to the new realities; finding ways to continue to promote international trade, and making trade finance – which drives international trade – more available and more effective has never been more important. Technology and innovation Digitisation of trade finance was a trend discussed throughout the conference, and regarded as a topic of particular importance - particularly as the industry continues to generate millions of pieces of paper a year – the majority dealt with manually. “This is expensive and causes errors and delays. In fact, around 50% of the costs for banks of obtaining a Letter of Credit (L/C) arise from the handling of manual documents,” said Flint. The broad consensus was that the digitisation of trade finance has the potential to increase efficiency and reduce costs. “Digitisation allows collaboration over

drafting of documents, in addition to legal certainty, straight-through processing, shared platforms, the automation of document production, and even a greater ability to conduct due diligence – all the more important when banks have been given more responsibility over the detection of financial crime and the enforcement of sanctions,” he added. Moving to a paperless trade system would remove inefficiencies, remove the risk of fraud, and provide greater certainty and speed. Clearly, it is important to capture the benefits arising from digitisation. The current procedures underpinning the financing of trade remain largely untouched by technology. In fact, according to the ICC Banking Commission’s 2016 Global Survey, only 7.4% of banks reported that their trade finance processes had been digitised “ to a great extent”. John Carroll, Head of Products and International Business at Santander UK, raised the point of how innovation can be used to facilitate companies to conduct more trade.

“In both the UK and the rest of Europe, there is a strong focus on high growth businesses, as while a small percentage of total companies, they disproportionately drive jobs and economic growth,” Carroll explained. “Inevitably such growth companies will expand overseas and represent a huge client and partnership opportunity for banks. Certain banks will be able to harness their technology and ideas to improve their propositions while at the same time using their global networks to help these businesses expand overseas.” Interest from the trade finance industry is already evident, with investment in supply chain finance solutions, capabilities, and platforms. “Banks are particularly interested in the way technology can play a big role in commoditising supply chain financing solutions to make them more accessible,” said de Ru.

highlighted the obstacles to digitising, such as scalability, security, privacy, interoperability, sustainability, and business and legal processes. When the audience voted on which was the biggest barrier, the result was clear – security and the business processes involved in achieving global standards. Achieving global standards is a considerable challenge, and as Chairman Flint pointed out: “If digitisation is the enabler of global trade, then common standards will be the enabler of digitisation. In a rapidly changing environment, clarity and standardisation are crucial to ensuring smooth operations in a complex industry.” Another barrier to digitising trade finance is that for many non-millennials, the adoption of technology is not second nature, particularly in the trade finance industry where so many are used to holding paper. In order to keep up with the changing times, the banking industry mind-set must also evolve. “Today, we need to embrace what is coming through the pipeline, and accept that the traditional ways of working in the

Technical challenges Yet, while digitisation is clearly important for innovation and growth, there are a number of barriers that need to be overcome. Carroll

Barriers to digitisation ■ Scalability (a system that scales with data integrity) ■ Security (data cannot be compromised by cyber-attack) ■ Privacy (achieving balance between privacy and resilience)

banking industry are changing – those who are successful will be those who embrace that as quickly as possible,” said Henry Balani, Global Head of Strategic Affairs, Accuity. Moreover, fintechs are increasingly entering the trade financing space. But should they be seen as competitors or partners? Irene Graham, CEO, Scale-Up Institute, said: “The future of relationships between banks and fintechs should be about cooperation and partnership. Those in the banking industry that do collaborate and find the right balance will be the most successful.” The threat of increasing trade barriers and limited options for liberalisation mean the trade finance industry needs to embrace change. In uncertain times the industry should pursue new ways to ease trade finance for businesses of all sizes. And the demand for trade finance will only grow. “By 2050 it is estimated that there will be about 5 billion new members of the middle class, all demanding goods and services,” said Flint. Clearly, there is reason to be optimistic in the long-term. Overall, the feeling at the conference was that trade finance has never been more crucial to businesses operating in the UK and the wider global economy – highlighting the need to collaborate efforts between industry, government and other corporates. If we can deliver the change required, the rewards will be significant. ■

■ Interoperability (ensuring DLT* fits in with existing standards) ■ Sustainability (DLT* uses more energy and storage) ■ Business process (global standards for exchange of data) ■ Legal framework 12








ICC United Kingdom’s Official G20 Publication

Annual Conference Authored by: Michael Every and Peter Hirst

Asia can no longer expect to export its way to growth


xport-led economies are struggling with falling demand and political resistance, so where do the opportunities for future growth lie? We speak to Michael Every, Head of Financial Markets Research, Asia-Pacific, at Rabobank for his view, with commentary from Peter Hirst, Co-Chair of Global Arbitration at Clyde & Co. In the late 1800s and early 1900s, the USA attempted to replace the UK as the world’s principal financial centre. America had become an enormous net exporter, but the US dollar was not the dominant international currency that it is today. As a mammoth exporter, dollars relentlessly flowed back into the country. The US required a new plan. To boost dollar circulation, it became a major lender, pumping the USA currency into Europe, Latin America and other regions, helping to direct trade flows through New York at the expense of London and to solidify the USA’s global financial status.

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Today China is facing a similar test as it deals with a slowing economy and dwindling exports. Its new lending and investment programme has similar hallmarks to the USA’s previous efforts, as it seeks to internationalise its currency, the renminbi (RMB). China is using its huge trade surplus, despite the slowdown in exports, to become a global lender. Chinese banks have become dominant players, eating into the traditional domain of the international banks. As part of this initiative, it has launched its much-vaunted ‘One Belt, One Road’ (OBOR) programme, which is intended to provide a pivotal impetus in the renminbi’s emergence and the augmentation of China’s existing trading routes. OBOR will increase China’s lending to infrastructure projects around the world, especially along the old Silk Road trading route, and boost the use of Chinese goods such as steel and China’s own labour force. “With OBOR, you can’t help but see the parallels with the USA’s previous policy and

see that it is about getting the renminbi internationalised. You can’t internationalise the currency if it keeps coming back,” comments Michael Every, Head of Financial Markets Research, Asia-Pacific, at Rabobank, indicating that an export-led economy doesn’t lend itself to developing a currency on the international stage. Like the US before it, China will hope that its lending programme and OBOR initiative has the desired effect but it will recognise that infrastructure projects can be uncertain ventures at the best of times. The US itself lost money during its own lending programme, in part due to World War I and the subsequent Great Depression. China may well have to face up to the fact that many infrastructure projects are not always financially successful, says Every. “Most important is to consider that few of these OBOR projects are necessarily going to be profitable for China – infrastructure on that scale rarely is. Is this really the best use of the country’s accumulated capital from

years of running trade surpluses? I’d say it’s an open question.” Political Resistance The OBOR initiative is of course part of China’s effort to deal with a slowing domestic economy and recognises that the recent globalisation phenomenon is engendering distress in some quarters. Donald Trump, the future US President, has made some characteristically forceful statements about the nation’s trading relationship with states such as China. Earlier this year, Theresa May, the UK Prime Minister delayed a decision on whether to allow the China-backed Hinkley Point nuclear project to go ahead over concerns about the security implications of the Chinese investment. This political backdrop is likely to have an ongoing influence on crossborder trade and commercial transactions. In light of the collapse in global demand for commodities and other goods, which has impacted economies such as China, the environment is even more tense. “We’ve seen from the past how disruptive a sudden drop in exports is for these kind of externallydriven economies,” says Every. “Any slowdown in global trade growth hits them extremely hard. In a nutshell, Asia can no longer expect to export its way to growth off the back of the Western middle class; domestic demand is going to have to become a much more important driver in Asia, and trade a larger one – relatively – in the West. Otherwise, risks rise of either another economic or political shock.” OBOR is likely to become a fundamental part of China’s efforts to see the RMB become more ubiquitous around the world, but Every expects China to maintain a much broader investment and lending strategy into developing economies as it seeks to ensure a steady supply of “key agricultural/ food inputs.” Last year, China and Brazil agreed a series of trade and investment deals worth billions, which included an emphasis on improving Brazil’s infrastructure, such as a USD 10 billion rail project. Earlier this year, Petroleo Brasileiro (Petrobras), Brazil’s flagship oil and gas company, received a USD 10 billion loan from China Development Bank, as China sought to insure its existing and future supplies of crude oil. Similar deals have been struck with other Latin American nations such as Venezuela, and trade between Brazil and China has ballooned from USD 6.5 billion in 2003 to USD 83.3 billion in 2012. Agreements of this nature are certainly welcome, particularly for nations like Brazil that are under fiscal pressure and have suffered a series of political and corruption scandals. But Every says that those dealing with China should be alert to its motivations

so as to avoid disputes further down the line. “All recipient countries will be happy to get new roads and rail, but there can be strings attached.” With China essentially putting up the money, it will understandably hold the balance of power in negotiations and counterparties will need to stay alert to ensure they protect their key interests. Intra-Asia and Trans-Continent Investment At another level, China has shown a willingness to invest in and to lend to developing economies that other nations have been reluctant to engage with. It is part of a growing trend for investment and trade to bypass the traditional money centres. China is one instance, but the rise of the ASEAN region and India in cross-border trade and investment is another example. These create new commercial and contractual relationships that don’t always follow classic structures. Parties to such agreements will typically have to work doubly hard to protect their interests. With infrastructure in the developing world still lagging far behind mature markets, the demand for further investment remains substantial and is expected to continue for several decades. While China’s OBOR initiative is thought to be a modern day evolution of its ancient silk trade routes, there is a clear necessity throughout Asia and the rest of the world to enhance trade links between regions and nations; tighter links between the ASEAN region and India is just one example. According to Peter Hirst, Co-Chair of International Arbitration at Clyde & Co, globalisation and state investment have led to the development and expansion of a system of legal and institutional protection designed to put foreign investors and host states on an equal footing. This includes protections for investors in international law and arbitration of investment disputes set out in multi-lateral and bilateral investment treaties, national investment laws and the investment agreements of the parties. This is an established yet developing area of law but there is no doubt that when arbitration disputes involve high stakes, economic and political upheaval can occur. Growth in new markets has advantages for investors and investees, but Every believes there are dangers on the horizon as imbalances between global demand and worldwide supply become even more acute. “The underlying backdrop is worrying. Asia has generally grown off the back of exports and that paradigm is coming to an end. You are seeing a backlash with some of the G20 nations saying that western consumers just want their jobs back. You also see China capturing more global trade at the expense

of other Asian nations. There are certainly tensions where China makes everything.” In a recent speech to the United Nations, Theresa May, Prime Minister of the United Kingdom, warned that increasing globalisation had resulted in “too many feeling left behind”. Every says this is just a case of history repeating itself, adding that, “in the long run, you always see a period of free trade breaking down in the end.” He believes this is classic mercantilism at work: “China wants to sell more than it buys. Mercantilism works brilliantly for the mercantilist, but it’s terrible for everyone else.” China, though, is a sophisticated beast. Its relatively late appearance to the world stage – it joined the World Trade Organisation (WTO) in 2001 – belies a gifted cohort of native policy makers and economists. It has proven adept at shifting direction as soon as obstacles appear to block its path to global pre-eminence. While political antipathy towards its stance on trade and exports may be growing, China is a wealthy saviour for many developing economies and frontier markets that also want to be part of the globalisation phenomenon. Globalisation may be running into a sticky patch, but it has certainly not run its course. ■

Peter Hirst is the Co-Chair of the Clyde & Co Global Arbitration Group. Peter has arbitrated and litigated in more than 50 international jurisdictions, from the Far East, Middle East, Central Asia, North Africa, US and South America where he has wide variety of experience in all arbitral institutions and areas of commercial law. Peter is a fellow of the Indian Counsel of Arbitration and registered foreign lawyer of the Brazilian Bar (OAB). Michael Every is the Head of Financial Markets Research Asia-Pacific. Based in Hong Kong, he analyses the major developments in the Asia-Pacific region and contributes to the bank’s various economic research publications for internal and external customers and to the media. Michael has nearly two decades of experience working as an Economist and Strategist. Before Rabobank, he was a Director at Silk Road Associates, a strategy consultancy based in Bangkok. Prior to this, he was Senior Economist and Fixed Income Strategist at the Royal Bank of Canada based in both London and Sydney. Michael was formerly also an Economist for Dun & Bradstreet in London, covering ASEAN.

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ICC United Kingdom’s Official G20 Publication

Global Debate

United Kingdom Global Debate: Business and government must collaborate on UK trade negotiations The International Chamber of Commerce (ICC) United Kingdom’s Global Debate on 23 November, at Merchant Taylors’ Hall in London, presented an opportunity to reflect on the current economic and political climate and to discuss the upcoming UK trade negotiations – with keynote speeches and a panel discussion providing muchneeded clarity and insight.

Speakers: • Lord Price, Minister for Trade & Investment • Sir Michael Rake, Chairman, ICC United Kingdom • Paul Drechsler, President, Confederation of British Industry (CBI) • Richard Eglin, Senior Trade Policy Advisor, White & Case, Geneva • Robin Niblett, Director, Chatham House • Chris Southworth, Secretary General, ICC United Kingdom • Linda Yueh, economist, broadcaster, and author


e couldn’t live in more interesting times, with the Brexit vote and most recently the surprise of the Trump election. Even before the events of the last few months, many were worried about increasing protectionism around the world,” said Sir Mike Rake, Chair of ICC United Kingdom, in his opening speech at ICC’s Global Debate. Clearly, such events are having a significant effect on UK business. This is particularly true with respect to the historic Brexit referendum, with ongoing uncertainty around the process of exiting the EU and upcoming UK trade negotiations. “The bottom line is businesses are used to dealing with change, Brexit presents new tough challenges,” said Paul Drechsler, President of the Confederation of British Industry. This might be easier for some

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than others, however, with Drechsler highlighting that it can be a real burden for small to medium-sized businesses. This is precisely why ICC and CBI launched a business guide on trade negotiations at the event, highlighting what businesses should expect and how they can prepare – recommending that businesses should inject their views and interests into the negotiation process as early as possible. The event’s keynote speaker, Lord Price, Minister of State at the Department for International Trade, highlighted the need now, perhaps more than ever before, for such collaboration in the business community – stressing that the UK should use its exit from the EU to become a “passionate” advocate of global free trade. “The UK has long had an internationalist nature, and business leaders across the world very much see Britain as open for business. At the same time, while government can help set the framework for future trading, the real insight needs to come from business on the front line – they need to help government to chart that future,” said Lord Price. In particular, the business community should help to reinforce the case for global trade – countering the increasingly prominent protectionist instincts around the world. Turning inwards will not solve trade repercussions. Lord Price explained that one need look no further than North and South Korea – the latter a fine example of an open economy in action, while its northern neighbour suffers from being a close economy. Indeed, the two countries started at similar positions in 1946, but are poles apart today. Seoul is a thriving democracy, with high standards of living for all its citizens, while Pyongyang is now one of the world’s most restricted and impoverished societies. “The Korean case shows why I and the Department for International Trade – and others in government – want the UK to become a champion of global free trade,” remarked Lord Price. ›

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ICC United Kingdom’s Official G20 Publication

Global Debate

› Globalisation backlash Yet, while open borders and globalisation are crucial to delivering growth in aggregate terms, this has not always been the case on the local level. A sense of missed opportunity for many in the UK and US – through frozen medium wages and job insecurity among manual workers – has pushed people to vote against the “establishment”. The speakers agreed that the Trump win – one clear example of the anti-establishment sentiment – has echoed the negative feelings towards trade in developed countries. Many of those who feel left behind find it easy to blame trade for economic woes or stagnant wages. Yet, as Linda Yueh – economist, broadcaster, and author – explained, local issues are more often than not caused by factors other than trade, including automation, increased worker bargaining power, and the need to assess the distribution of wealth. Indeed, she also spoke of the need to focus on domestic policies and ensure that the benefits of trade are distributed fairly in society: “Until policymakers address this, there will be a huge resistance towards trade, at the very moment we need it the most. Despite backlash over globalisation, the digital

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economy means more business will continue to be conducted across borders. The question is whether policymakers will lag behind or help to open up markets.” And, as one of the audience members highlighted, the UK faces a paradox when it comes to trade. According to recent University of Strathclyde research, 90% of people in the UK want free trade, but 70% also want to limit immigration. Certainly, Robin Niblett, Director of Chatham House, noted the identity issues that can arise with large rapid immigration or cultural change. “Most often it is the more centralised countries that are the least resilient to the immigration phenomenon – for instance, the challenge for the UK is the disconnect between the aggregate benefits of immigrants moving to the UK, and how these are distributed regionally. For instance, if you are in Sunderland, where immigration levels are high, and not enough hospitals and services are being built, these issues will be connected to the immigration phenomenon,” Niblett remarked. A cliff-edge? Having established some of the reasons behind the EU referendum result, the Trump

win, and how businesses and government should and must collaborate, the Global Debate moved on to the nitty-gritty of what we might be able to expect as the EU negotiations unfold. First on the agenda was the WTO. In the current climate, the WTO is often referred to as a “back-up option” for the UK following the loss of preferential access to the EU market. The WTO is the basis on which the UK trades with around 100 countries with which it does not currently have a free trade agreement – including the US, Japan, China, India, Brazil, Australia, New Zealand, and most of the rest of Asia and Latin America. In fact, these countries account for around half of UK trade and about 60% of UK exports – worth annually around £300 billion. According to Richard Eglin, Senior Trade Policy Analyst in the Geneva Office of White and Case LLP, WTO rules mean that trade is unlikely to be disrupted while negotiations are taking place. At the same time, however, the UK should keep its schedules unchanged as far as possible from what they currently are in the EU. Furthermore, the WTO will continue to provide security and market access without disruptions. But what about the other half of UK

trade – most of which is with the EU? “WTO rules will apply fully to UK-EU trade from day one after the UK withdraws from the EU – regardless of whether a new trade agreement is in place,” Eglin explained. “WTO rules will allow the UK to continue to use trade defence measures in a disciplined way, against unfairly subsidised imports. This could matter a great deal for some UK industries, such as steel, chemicals, and plastics – which are presently protected from unfair competition by EU remedies.” What’s more, WTO rules will also regulate the type of trade agreement that the UK will negotiate with the EU. Free trade agreements can cover goods and services, separately or combined – with plenty of examples of both around the world. However, single sector agreements – such as an agreement solely in financial services – are not allowed. WTO rules require free trade agreements to cover all the trade between parties. Finally, WTO rules will also guarantee market access between the EU and UK. 30% of trade between the UK and EU will continue to take place duty free. Beyond that, however, any access falls short of what UK exporters currently have for the EU market – particularly with regards to agricultural

products, where the farming sector will be one of the priority sectors when it comes to negotiating. Clearly it is in the interest of both UK and EU business to reach a free trade agreement covering both goods and services. Of course, the Global Debate attendees also wanted to know how much truth there is to the idea that without transitional arrangements in place, businesses are facing a cliff edge in negotiations – with high tariffs, for instance. According to Eglin, while there will be some higher tariffs, the biggest concern is actually about non-tariff barriers – the exchange rate and regulatory aspects, for instance: “The UK Government needs to know what to negotiate for different industry sectors – from car manufacturers to farmers, for instance. Without knowing this, then we have broad statements about falling off a cliff – in some cases potentially correct, but we don’t yet actually know what this means for different sectors.” Timing For many businesses, ascertaining the timing of negotiations is also a priority. Here, however, there is no definitive answer.


“We have to first see what we want to negotiate and then be smarter about how to do it,” Eglin said. “It may be preferable for the UK to aim for a single free trade agreement covering farm exports, manufacturing, services, and so on – because of the wider scope for trade-offs that this would provide. The only downside is that this could delay agreement for all until the most contentious issues have been resolved.” In addition, as Eglin elaborated, similar starting positions between the UK and EU could help to accelerate negotiations: “Ideally the UK should keep its EU market access schedules unchanged, and maintain – as far as possible – EU regulations for goods and services. The more the market access and regulatory profiles diverge, the more time-consuming the task of identifying and evaluating reciprocal concessions for both UK and EU negotiators,” Eglin added. Furthermore, identical goods schedules might also make it possible to find a way of mutually avoiding the use of rules of |origin and costly customs procedures. “Although we are only beginning to recalibrate UK trade policy, my advice to companies is to get fully involved now. They should identify specific trade concerns about the transition and make sure that these are fully factored into the instructions that the government will provide to UK trade negotiators,” Eglin said. “Successful trade negotiation depends on good preparation and being decisive from the start about the objectives, the fall back positions and the possible trade-offs.” Certainly, the ICC-CBI business guide on trade negotiations provides clarity for businesses with regards to the negotiation scenarios and timeframes – explaining that businesses must map out their company risk and opportunities across this timeline. “Staying up to date with information and in close dialogue with government will certainly help businesses to understand the opportunities and manage the risks,” added Chris Southworth, Secretary General at ICC United Kingdom. Finally, when it comes to the EU negotiations, the political context is, of course, a deciding factor. Robin Niblett went so far as to suggest that in a sense we are not entering trade negotiations, “we are entering a political negotiation – within Britain as much as with the rest of the EU”. Getting the politics right and considering the different set of perspectives is therefore critical. The message was clear: whether to combat anti-trade sentiments – helping us avoid protectionist policies entirely – or to ensure we get the best deal out of the EU negotiations, British business must step up to the plate and communicate with government. ■ ❙ 67

ICC United Kingdom’s Official G20 Publication

Global Business Authored by: Jenny Stewart

Meet your global business network


year is a long time in business and this summer will mark 12 months since Liverpool’s second International Festival for Business - with the economic landscape now looking very different. Last June the business world came to Liverpool for IFB2016, which followed on from the hugely successful IFB2014. Centred on the newly-built Exhibition Centre Liverpool, IFB2016 saw 26,000 delegates from all over the world descend on Liverpool’s iconic waterfront for the three-week extravaganza. There were 108 international delegations from 95 countries, more than 20 from China alone, attending 80 events - even Her Majesty the Queen paid a visit. An analysis of IFB2016 revealed that as a result of the festival more than 500 UK businesses secured export sales worth £87m, more than 850 firms secured domestic sales of £145m, and businesses reported attracting £22m of private sector investment. Furthermore, over 2,000 new jobs are expected to be created across the economy thanks to the event. Liverpool & Sefton Chamber of Commerce played a central role at IFB2016. ‘Meet Your Global Business Network’, the chamber’s international trade conference and gala dinner, was one of the highlights of the festival. Organised by the chamber with the support of colleagues at the British Chamber of Commerce and the International Chamber of Commerce (ICC), it returned by popular demand after proving a hit at IFB2014. The event introduced some 250 delegates to representatives from more than 30 international markets for a plenary and panel discussions, and helped facilitate around 300 one-to-one meetings. The concept was driven by demand from chamber members who had experienced a positive dividend from IFB2014 – which was directly responsible for helping 120 delegates access support to visit international markets and leverage the strength of the global chamber network. AT IFB2016 we were joined by representatives from Latin America, Africa, Asia, and the Middle East who assisted in developing the presence of UK businesses on the global stage. The event was brought to IFB2016 with international strategic partners Turkish

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Airlines, Santander, Warrant Group and DLA Piper and culminated in an exclusive black tie gala dinner. The overseas delegates were treated to a showcase offering the “best of British” in comedy, music, food and sport. Our IFB dinners have become renowned and attract companies who want to do business in an informal environment, but where they can build lasting relationships with overseas chamber representatives. Attending those dinners is proven to put our members in a better position to trade abroad and boost their bottom line. John Carroll of the ICC addressed the dinner and talked about how businesses are fortunate to operate within a “sophisticated business environment” that they would do well not to take for granted. He was applauded in his warning against anti-trade rhetoric and protectionist policies and, almost one year on, his words now resonate almost prophetically. He talked about how 2015 had seen the biggest rise in protectionist activity since the onset of the financial crisis with a estimated 40% rise in trade barriers introduced compared to 2014. During IFB2016 Britain held a Referendum on its membership of the European Union and, to the surprise and dismay of many in the business world, we voted to leave by 52% to 48%. The UK Government is now set to embark on two years of complex negotiations ahead of our departure from the EU and this has left businesses uncertain for the future. Will we successfully negotiate a favourable trade deal with the EU that will allow us continued access to the single market and its 500m-plus consumers or will we face a so-called “hard Brexit”, leaving without a deal in place and falling back on World Trade Organisation rules? There are growing fears that there are powerful voices in the cabinet who are relaxed about the latter option, indeed Prime Minister Theresa May is now on record as saying “no deal is better than a bad deal”. Should Britain leave the EU without a deal in place the National Institute of Economic and Social Research has said the drop in UK-EU trade, caused by the imposition of tariffs, could be as much as 59%. And Mr Carroll’s warning about the increase in protectionism became ever

more real with the election of Donald Trump as US President. Mr Trump has not been shy in bringing his own protectionist instincts to the fore with his “America first” policy. During his speech last year, Mr Carroll delivered a compelling message about the Transatlantic Trade and Investment Partnership (TTIP) which sought to simplify trade between the EU and the US. It was estimated, he said, that TTIP could benefit the UK economy to the tune of £10bn, but negotiations have stalled and any deal now seems remote. However, the time is now to look forward and while Brexit, and the situation in the US creates uncertainty, there are as many opportunities as there are challenges. On the banks of the River Mersey the opening of the Liverpool2 deep-water port

SHOULD BRITAIN LEAVE THE EU WITHOUT A DEAL IN PLACE THE NATIONAL INSTITUTE OF ECONOMIC AND SOCIAL RESEARCH HAS SAID THE DROP IN UK-EU TRADE, CAUSED BY THE IMPOSITION OF TARIFFS, COULD BE AS MUCH AS 59%. terminal means Liverpool is now facing the right way for the first time in decades. Our latest quarterly economic survey showed firms in the city region have never been more optimistic for the future as they are right now. Our own trade experts have identified Mexico, Australia, Turkey and Kenya as markets ripe with growing trade opportunities, as well as more established markets such as South East Asia and

the Middle East. Here in the Liverpool city region we are open for business and our dynamic entrepreneurs are chomping at the bit to trade with the rest of the world. We must hope that a strong, visionary, intelligent leadership emerges in Britain to aid the international trading community, allowing our family of chambers to achieve our mutual objectives of economic growth. ■

Jenny Stewart joined the Chamber in 2006 as Head of Membership, was named Chief Executive Officer at Liverpool Chamber in November 2012. The Chamber’s mission is to create business by enabling companies to grow, by facilitating networks and business contacts and encouraging business to trade globally. It delivers the National Apprenticeship Service creating more than 300 new jobs each year for young people. Jenny founded the Spark Up programme at the chamber which works with early start entrepreneurs. In two years, Spark Up has worked with 120 entrepreneurs, created 130 jobs and enabled £550, 000 business finance.

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ICC United Kingdom’s Official G20 Publication

Scotland Authored by: Liz Cameron OBE

Securing Scotland’s Exporting Future


believe that there is huge untapped exporting potential among Scotland’s businesses, particularly among our small and medium sized firms. Statistics show that proportionately fewer Scottish SMEs are trading internationally than is the case for UK businesses as a whole; so, while there is room for improvement, there is also the potential for quick wins. One of the key barriers preventing more businesses from getting involved in exporting is a perception of the financial and regulatory risks involved, particularly at a time of shifting international trade relations. The UK Government is well placed to enable solutions that will work for business, such as Export Finance, and to support Chambers in delivering lasting business relationships. The Scottish Chambers of Commerce network is working hard to ensure that more of Scotland’s businesses can start exporting. This is a task that is best undertaken in partnership with our Governments at a UK and Scottish level, with the range of support that they can bring to the table. Recently, I travelled to Germany with the Scottish Government to meet with colleagues at the Association of German Chambers of Commerce and to discuss the opening of a new Scottish Government Innovation and Investment Hub in Berlin. In addition to our European engagement, we led a Chambers of Commerce delegation to China and opened up a Scottish Trade Office in the Yantai region, providing a business-led practical way for businesses to export. Building on this type of domestic and international collaboration will become even more important as Britain prepares to leave the European Union. So, whilst the Scottish Government can help businesses with this targeted resource in key markets and support Chambers of Commerce to increase international business alliances, the UK Government must utilise its enhanced capacity to open more doors for business across the globe, particularly in high growth and emerging markets. The additional support for UK Export Finance announced by the Chancellor in his 2016 Autumn Statement is one welcome example of UK government support that Scottish businesses can build upon, and is particularly important at a time

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THE SCOTTISH CHAMBERS OF COMMERCE NETWORK IS WORKING HARD TO ENSURE THAT MORE OF SCOTLAND’S BUSINESSES CAN START EXPORTING. THIS IS A TASK THAT IS BEST UNDERTAKEN IN PARTNERSHIP WITH OUR GOVERNMENTS AT A UK AND SCOTTISH LEVEL, WITH THE RANGE OF SUPPORT THAT THEY CAN BRING TO THE TABLE. of fluctuating exchange rates and continued difficulties for many small exporters in accessing credit facilities. Tapping into emerging markets matters for Scottish businesses, because whilst the EU will remain a significant export market, even in the wake of Brexit, it has been the rest of the world that has provided the bulk of new opportunities in recent years. That can be shown by the fact that whilst the value of Scotland’s exports to the EU have grown by 7.9% since 2002, exports to the rest of the world have outstripped them, rising by 84.3% over the same period. To make this happen, Government must open the doors and oil the wheels that make trade possible. Thereafter, it is up to the private sector, led by Chambers of Commerce, to forge the lasting alliances that will create the real exporting winners of the future. ■

Liz Cameron OBE is Chief Executive of Scotland’s largest business network. Passionate about growing business & international trade, Liz is a sought after ‘business voice,’ advising Scottish & UK Governments, start-ups & companies on economic & business issues. Liz has been recognised as a Top 10 Women of Influence in Scotland and was a Finalist at the 2016 Scottish Business Awards. In addition, Liz also gives back to the community and serves as Chair of Wevolution and is on the Brain Trust of Tedx Glasgow.

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ICC United Kingdom’s Official G20 Publication

Business Engagement Authored by: Maria Beatrice Deli

G7: An opportunity for business to engage


he upcoming months will be crucial for the world policy agenda, with the Group of Seven (G7) Summit taking place in Italy in May and Group of Twenty (G20) gathering in Germany in July. The timing of the Summits heightens their importance, given the substantial political, social and economic uncertainties the world is currently facing. While the world leaders bear the great burden of fostering long-term global growth, ensuring a fairer distribution of incomes and wealth, and strengthening their commitment for the market economy, ICC Italy is ready to actively engage its member companies in the G7 process and ensure their voice is heard. Indeed, the interaction between the G7 political and business leaders can enact mutually beneficial flows of information, feeding into the Taormina Summit’s agenda genuine business-oriented added value as well as demonstrate that the business community is already fine-tuned on a truly global economic governance. Since the first meeting in Rambouillet in 1975, the G7 has taken significant initiatives 72 ❙ iccwbo.uk

to coordinate economic policies and confirmed its strong influence on the world economy, given that it brings together seven of the largest trading nations which, combined, account approximately 64% of global net worth. Global trade governance, innovation, sustainability and the efficient use of resources are three of the main priorities this year’s Summit will focus on. On the first point, the G7 business community could send a positive signal to the world, showing its willingness to cooperate on market liberalism and support a pro-trade agenda. ICC Italy advocates for global trade and investment promotion, believing that a commitment to working together on issues such as market access, non-tariff barriers, market distortions, unrestricted competition and WTO reform may be easier to obtain within the G7 than in a wider context, given the similarities in economic structure within the G7 countries. G7 members are expected to lead in implementing the 2030 Agenda by embedding the UN Sustainable Development

Goals in their own national policies and plans. The transition towards an economic system capable of using scarce resources more efficiently is at the top of the global political agenda. In this respect, ICC Italy is spreading among its member companies the world that sustainability is no longer a luxury investment but a core driver of business productivity and growth. This is why we are calling upon the business community to actively contribute to the definition of coherent and meaningful polices which conciliate the environmental, social and economic dimensions, so as to ensure fair economic rewards, while at the same time respecting our Planet’s limits. Finally, innovation and digitalization remain at the core of the G7 agenda and offer significant opportunities for business engagement. ICC Italy, with its newly established Digital Economy Commission, is actively developing shared norms and standards, promoting cross-sectoral best practices and strengthening consumer confidence, believing that these actions should be further encouraged and shared among the business leaders, also by conveying sound and effective recommendations to be embodied in the G7 agenda. The high-level interaction of the business community with the Heads of Governments triggered by the Taormina Summit provides an outstanding opportunity of direct participation to achieve shared goals. ICC is best placed to help facilitate the dialogue, and will take the outburst of the G7 Summit to continue engaging effectively with national institutions to promote the business interests on the longer term. ■

Maria Beatrice Deli is Secretary General of ICC Italy since 2013 and Secretary General of the Italian Association for Arbitration (AIA) since 2011. Professor of International Law at the University of Molise and of International Organizations at LUISS Guido Carli, Rome. Attorney-at-law, practicing in a major law firm in Rome until 2011, mainly advising on Public and Private International Law issues and in international commercial arbitration. Member of the board of Editors of Diritto del Commercio Internazionale and Rivista dell’Arbitrato. Lecturer for Master Programs and international conferences focusing on international law, private international law, international investment law and arbitration and author of articles and chapters in international commercial law and private international law.

ICC United Kingdom’s Official G20 Publication

Future Trade Authored by: Marijke Wolfs and Wybe Wildenbeest

The future of trade for Europe: No simple solutions for complex issues


ver the past three years a nationalistic and protectionist trend has been wavering through Europe. Populist parties have been gaining support, promising to put economic integration and international trade to a hold and bring back jobs to their respective countries. All too easily, simple solutions are being presented as answers to complex issues. In this ‘post-truth’ world, the difference between opinions and facts do not seem to matter. Those advocating for a halt to trade agreements seem to have forgotten what trade has brought us over the past century: stability, jobs, rising incomes, prosperity. Let us therefore not throw out the baby with the bathwater. In the Netherlands, traditionally, we earn our bread and butter through international trade. We’ve always had an open economy and high levels of trade with other countries. The Netherlands earns some 33 percent of its income from the export of goods and services . In 2015, the value of exports was 81.8 percent of the Netherlands’ GDP. As the fifth-largest exporter of goods in the world, the country occupies a prominent position when it comes to world trade. In the debate on international trade, the significance of SMEs and family businesses for an economy is often underestimated or forgotten. As in other advanced economies, they are a key growth driver for the Dutch economy. They make a major contribution to employment and value added in the Netherlands; 36 percent of SMEs in the Netherlands are involved in international activities, such as trade and investment. Most of these SMEs import and export products, but international cooperation and Foreign Direct Investment also play important roles. An estimated 15 percent work for a foreign company and some 44 percent of Dutch employees work for exporting companies. Rather than falling back on protectionism, an analysis is needed on what feeds the current unrest and how it can be addressed. What is the economic impact of accelerating digitisation we see ourselves confronted with? Let us develop alternatives and long-term solid solutions that benefit all. This will not be an easy task in times when populist messages tell an easy to understand and, for many, appealing story. Instead of competing for the biggest slice of the cake, let us stimulate countries and people to 74 ❙ iccwbo.uk


collaborate in expanding it, whilst making sure that this bigger cake will be more equally distributed for all. Strong leadership will be required and a fact based debate; there is a lot to lose, and not just in terms of trade. As Pascal Lamy, former Director-General of the World Trade Organization and former EU-Commissioner on trade stated: ‘When containers cross borders, armies won’t cross them.’ In other words, trade facilitates peace and peace facilitates trade, the same conviction which has been at the heart of the ICC organization since it was founded in 1919. ■

Marijke Wolfs has been Secretary General of ICC Netherlands, part of ICC The world business organization, since July 2011. Before joining ICC, Marijke Wolfs worked as a programme manager and business consultant on organizational change for large corporations. Prior to that she worked at the Netherlands Ministry of Economic Affairs where she served as Unit manager of the Knowledge centre for International business and as Project manager of G2G projects. Marijke Wolfs holds a bachelor’s degree in European Studies and a master’s degree in International Business Administration. She followed the post Master programme on International Relations at the Clingendael Institute for International Relations (The Hague) on a scholarship. Marijke Wolfs is currently member of the board of UN Global Compact Netherlands, advisory board member of the Dutch Arbitration Association, the Netherlands Arbitration Institute and of the Institute for Financial Crime (IFFC). Wybe Wildenbeest is intern at ICC Netherlands and studies both Law and Economics at the Erasmus University Rotterdam.






ICC United Kingdom’s Official G20 Publication

World Chamber Congress

ICC WCF World Chambers Congress: Connecting chambers across the globe


ith the global economic landscape constantly shifting, chambers and their business members are in need of new ways to cope with the many changes and challenges facing their respective communities. Now in its 10th edition, the World Chambers Congress is the only international forum of its kind—allowing chamber leaders and professionals to share best-practices, exchange insights, develop networks and address specific obstacles and opportunities facing business, in addition to learning about new areas of innovation. Expanding networks Taking place in Sydney, Australia from 19-21 September, the Congress is co-organised by the ICC World Chambers Federation (WCF) and the Sydney Business Chamber (SBC). Under the theme “Where business connects,” the global forum provides unparalleled opportunities to create ties and strengthen relations with a diverse and international group of individuals representing more than 110 countries. With a variety of informal and formal networking occasions, there will be numerous chances throughout the event to make connections, share ideas and establish a foundation for future partnerships, projects and more. Leveraging expertise The three-day event gathers an impressive speaker line-up of international thoughtleaders and experts coming from all corners of the globe—all with different backgrounds and an array of experiences to share. Featured speakers include ICC Chairman and Founder and Chairman of Bharti Enterprises, Sunil Bharti Mittal; joint winner of the 2015 Nobel Peace Prize Ouided Bouchamaoui; CEO of Confidere Group Anthony Howard; CEO of Global Infrastructure Hub Christopher Heathcote; Secretary General of International Organisation of Employers (IOE) Linda Kromjong; Founder and Executive Chairman of the Institute for Economics and Peace Steve Killelea; and President and CEO of the Dubai Chamber of Commerce and Industry Hamad Buamim; and President of the Asia Pacific region at Campbell Arnotts Ümit 76 ❙ iccwbo.uk

Subasi,; among others. Already slated for discussion are timely topics ranging from rising anti-trade sentiment and digitalisation to sustainability and diversity. Awarding innovation Under the umbrella of the World Chambers Congress, the World Chambers Competition is the only programme that acknowledges and rewards Chambers of Commerce and Industry around the world. This unique award gives an opportunity for chambers to improve and enhance their services as well as strengthening local SMEs. After a thorough evaluation, assessed by a prominent and experienced jury, one winner will be chosen for each one of the four competition categories (Best CSR, Best job creation and business development, Best SMEs financing and Best unconventional projects). Chambers can still submit their projects until 04 May by visiting www.worldchamberscompetition.org Championing growth The flagship event will equip delegates with the contacts, knowledge and know-how that will empower them to make a positive impact upon return to their respective communities—whether it is through creating new initiatives to advance global economic growth or generating breakthrough solutions to other essential issues affecting their community. ■ To learn more about the ICC WCF 10th World Chambers Congress, visit www.worldchamberscongress.org.

The International Chamber of Commerce (ICC) World Chambers Federation (WCF) is a unique global forum uniting a powerful network of 12,000 chambers. Chambers of commerce represent the strongest and most comprehensive of world business networks. By helping members connect to international peers, exchange best practices, share knowledge and explore trade opportunities, the ICC WCF helps individual chambers to influence the economic success of a country.


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ICC United Kingdom’s Official G20 Publication

Argentina Authored by: Carlos E. Alfaro

Argentina’s 2018 G20 Presidency


opulism was at its peak in 2016 but data shows that reality is winning in 2017. This trend will favor pragmatist policies like those that President Mauricio Macri is applying in Argentina. During its G20 Presidency, Argentina will have the unique opportunity to influence the agenda of the summit and prove that it has come a long way to, not only return and be part to the world economy, but play an important role in a new trend back to common sense policies. By the year 2018 Argentina could be the G20 economy with the biggest growth in recent years. In general, economists predict that Argentina’s economy may expand 3% this year, the quickest growth out of all G20 countries that make up 85% of global GDP, in spite of inflation. An unjustified importance has been placed in the results of the mid-term elections in October 2017. The results of these elections will not affect the ability of the Government to continue with its pragmatist micromanagement of government affairs. The agenda that Argentina can push at the G20 meeting in 2018 should be one that represents the goals of its economic policy: abandoning ideological policies to concentrate in practical day to day important issues for the ordinary people like employment, education and food. In general in G20 countries, people under 40 are not looking to messianic idealists but to leaders with the capacity to manage the many problems they have to confront in their life (transportation, access to information and education, work opportunities, sustainability, quality life, security, among other day to day concrete needs). While ideologists are still dealing with the past, the majority of people are looking at the present and demanding real solutions and hands on management. Thanks to the rapid growth of technology and social media, access to non-filtered information is framing peoples’ opinions. People favor an orderly evolution rather than the romantic ideology of the “revolution” that guided the young people of the past. Argentinians are now looking at a President responsible for effective planning, delegating, coordinating, staffing, organizing, and decision making capacity that could get results for a particular community or country. So far the President of Argentina, Mauricio Macri, fits this profile. He showed this capacity when for eight years he governed the city of Buenos Aires, which was perhaps 78 ❙ iccwbo.uk


an easier model to apply his managerial capacity than the nation -where the results of a particular policy may not be perceived immediately. This need for a competent manager is incremented by the advance in innovation and technology, which will explode in the years to come. Old style politics and remedies are not up for this challenge. The agenda of the G20 must recognize that the most powerful countries should change the paradigms of the past and address the needs of a world that is in constant evolution, creating crises and needs which will require practical non-ideological solutions. ■

Carlos Alfaro is Independent advisor and non-executive member to the board of multinational corporations (compliance, transparency and regulatory related issues). Advisor to multinational European and American corporations in international private transactions (mergers and acquisitions, joint ventures, strategic alliances, international construction projects and project finance). Chairman of the Argentine-American Chamber of Commerce in New York and Founding Partner of Alfaro-Abogados LLC a New York based advisory firm with representative offices in Beijing and Buenos Aires Mr. Carlos Alfaro’s understanding of the political and economic scenarios allows him to anticipate changes in the legal framework and determine the impact of these changes in the business cycle. His long-standing career representing national and multinational corporations, lending institutions and banks has made him a referent in the legal circles. Of particular importance is the fact that this experience represents more than thirty years in different economic and legal environments (inflation, hyperinflation, deflation, major devaluations, currency boards, etc.) and governments in which risk allocation and protection require legal, economic and political expertise.

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ICC United Kingdom’s Official G20 Publication

Shared Values Authored by: Cherie Nursalim

Better Business, Better World

Inviting CEOs to join BSDC, Giti, Unilever and others to adopt the SDG Pyramid as a path to our shared value future.


n the fourth industrial revolution, there is a need for business to be reimagined,” Sunil Mittal, Chairman of the International Chambers of Commerce (ICC) conveyed at a strategy meeting in Bangkok. A transformative approach is proposed that includes reimagining business in the data, digital, sharing economy revolution such as our foray into digital learning and certification launching ICC Academy platform in Singapore to educate SMEs and professionals from trade finance to fintech. Reimagine business also revisits the core founding principle of the ICC as merchants of peace (through partnerships), to incorporate ecological and social realms as it played a key role as merchants of sustainable development in support of the United Nations 2030 agenda. These three realms elegantly portray the UN seventeen sustainable development goals (SDG) through the SDG Pyramid. The first ten goals represent humanitarian, economic development, inclusiveness and people issues, the next five goals represent sustainability and ecological issues, and the last two goals on peace and partnership reflect spiritual and value systems. As the world’s largest business organization with 6.5 million members across 130 countries, the International Chambers of Commerce is taking a representative role at the United Nations for business in COP climate meetings and in the promotion of the global goals.

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What is clear is that ‘Reimagine Business’ is not only good for public image, it is a matter of survival. The great news is that it makes good business sense. Better Business Better World report launched at Davos 2017 highlights the opportunities. The SDGs open the sixty biggest market “hot spots” worth up to US$12 trillion a year in business savings and revenue and 380 million jobs opportunities by 2030. Led by the Business and Sustainable Development Commission with UN Foundation and Systemiq as managing partners, the report is supported by the Bill and Melinda Gates Foundation, Rockefeller Foundation, Global Green Growth Forum and governments agencies from Australia, Netherlands, Norway, Sweden, and United Kingdom. The BSDC Commissioners, of which I am honored to be a member of, is led by Lord Mark Malloch-Brown. He assembled distinguished leaders of business, finance, civil society, and international organizations International Chambers of Commerce Secretary General John Danilovich, Paul Polman of Unilever, Ho Ching of Temasek, Jack Ma of Alibaba, Lise Kingo of UN Global Compact, Sharan Burrow of International Trade Union Confederation, Mary Ellen Iskenderian of Women’s World Banking, Gavin Wilson of IFC Asset Management, Mo Ibrahim, Richard Edelman, Hendrik du Toit of Investec, Mats Granryd of GSMA, John Fallon of Pearson, WEF Young Global Leader Helen Hai among others.

Business needs to think beyond beating the quarterly profit targets to focus on the shared value Sustainable Development Goals that are set for 2030. Business leaders need to ask themselves what the SDGs mean for their own companies and sectors. They need to recognize that solutions call for collaboration across sectors beyond business and government to include other stakeholders such as the civil society. “Business leaders need to strike out in new directions to create opportunities aligned with sustainable and inclusive economic models.” Those at the leading edge of business see that sustainability matters for becoming a successful business and it matters for our communities. One of the hotspots in the report is “cultural tourism”. Giti Group is undertaking the opportunity to develop an Island of Happiness, the Kura Kura Bali Island development in the heart of prime Bali. The initiative is an eco-development project that is premised upon the Balinese Tri Hita Karana or Three Ways to Happiness values that align with the Balinese-Hindu based philosophy through the harmony of three realms people harmony, ecological harmony, and spiritual harmony. Around May 14-16, China hosted 28 heads of State and international organization leaders in an extraordinary Belt and Road Summit in Beijing. China President Xi Jinping, in a show of global statesmanship, delivered their first promises in a bold alignment of win-win solutions and interests of nations across varying development stages linked by one belt one road towards a shared value vision to meet the common challenges of sustainable development. UN Secretary General Antonio Guterres applauded in particular the people to people collaboration aspect of this initiative. Against this backdrop, Giti group and UID foundation participated in the launching of the Sustainable Development Goals Institute at Tsinghua University with Jeffrey Sachs Special advisor to UN Secretary General and the signing of collaboration to nurture technopreneurs for the fourth industrial revolution with Minister of Industry of Indonesia Airlangga Hartarto. Indonesian President Jokowi Widodo met with Tsinghua University President Qiu Yong and delegates to welcome the collaboration including Tsinghua Southeast Asia Center to be established in Kura Kura Bali. Tsinghua Southeast Asia Center will be housed within the United in Diversity Creative Campus together with the UN global initiative Sustainable Development Solutions Network Southeast Asia, with a mission to advance the achievement of the SDGs. A global Island of Happiness crowdsourcing challenge will be launched in collaboration

Above: United Nations President Peter Thomson with the Coordinating Minister for Maritime Affairs Republic of Indonesia Luhut Pandjaitan and UN SDSN-SEA Chairman Cherie Nursalim

Above: Launch of the Institute of Sustainable Development Goals at Tsinghua University on the side of the Belt and Road Summit in Beijing May 14 with Tsinghua Vice President Yang Bin, Dean Xuelan of School of Public Policy, with Professor Jeffrey Sachs co chairs of UN SDSN and Special Advisor to UN Secretary General.

Above: Christine Lagarde reading the G20 Magazine featuring Island of Happiness eco development Kura Kura Bali on its cover.

Above: Photos of the President of Indonesia Jokowi Widodo meeting with Tsinghua University President Qiu Yong graced by Coordinating Minister for Maritime Affairs Luhut Pandjaitan, Minister of Industry Airlangga Hartarto, Minister of Foreign Affairs Retno Marsudi and signing ceremony with former Minister of Trade Mari Elka Pangestu President of United in Diversity foundation and Ambassadors of China Xiefeng and Indonesia Soegeng Rahardjo and former Ambassadors Sudrajat and Andri Hadi.

with HeroX chaired by Peter Diamandis to crowdsource solutions for this eco development around the G20. On March 20th, we were given the platform at the United Nations to present the SDG Pyramid framework around the UN day of happiness at the launch of the World Happiness Report. At the same time a global campaign of SDG Pyramid to Happiness is launched, with the support of UN SDSN, BSDC, MIT IDEAS, Tsinghua University, World Largest lessons partners UNICEF, Project Everyone et al. Indonesian Minister of National Development Planning Bambang Brodjonegoro - “The Indonesian government is fully committed to the Sustainable Development Goal. I am delighted to join the United in Diversity Foundation and UN SDSN to launch the “SDG Pyramid to Happiness” awareness campaign..” We invite CEOs to adopt and promote the SDG Pyramid! Please join the Business and

Sustainable Development Commission, Giti, Unilever and others to sign up before the UN General Assembly in September 2017 and Davos next year. There will be a regional launch of the Better Business Better World report in Ecosperity hosted by Temasek Holdings in Singapore June 5 followed by a China launch in Shanghai Three on the Bund on June 8 and in Beijing June 9 hosted by Giti Group in collaboration with BSDC, UN SDSN, and China Chambers of International Commerce. ■

Cherie Nursalim is Vice Chairman, Giti Group, Chairman for Sustainable Development Solutions Network Southeast Asia, Board Member of International Chambers of Commerce, and of the Business and Sustainable Development Commission. www.sdgpyramid.org

Above: WTO Director General Roberto Azevedo with President of UID and Former Indonesian Minister of Trade Mari Pangestu.

Above: Christiana Figueres, Convenor, MISSION 2020, Former Executive Secretary of UNFCCC

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ICC United Kingdom’s Official G20 Publication

Support Authored by: Fiona Latchman

Birmingham Care group


e have been supporting older adults with a range of Conditions such as Dementia as well as younger adults with Conditions such as Learning Disabilities with associated Conditions such as Autism within our community since May 2012. We provide person centred day opportunities for members of our local community who are being cared for by their loved ones. The aim of our service is to support our service users to engage in a range of activities bespoke to their needs and preferences to provide opportunities for their self-development and achievement of outcomes which have a true meaning for them. Our service also provides the added value for informal carers to have break from their caring role. Our focus as a service is to promote and encourage a healthier, active lifestyle whilst forming companionship within an informal but safe setting for our users. The NHS and particularly the City Council is currently subject to stringent financial pressures with increasing demand for services particularly from our aging population. Thus, services have become more limited within the local area which has resulted in more service users attending our centre, many of whom do not meet the criteria for their day opportunity service to

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be funded by the Council, increasing the burden on informal carers to care for their loved ones. As a small community, generated organisation, we have limited resources available to provide and or expand our services to meet an increasing demand for our service particularly those who do not meet the funding criteria of the Council and have limited resources to fund their own day care opportunity. Many of our service users have very little to no contact with their families and rely on our services to socialise and integrate with others in the community. We are also unable to cater for those service users who as self-funders are unable to pay for their day care due to limited financial means. Aims and Objectives: ■ To provide person centered day care opportunities for older adults and younger adults with a range of disabilities where they can interact, participate and integrate with the local community. ■ To support service users with their health and well being through activity workshops/exercise of their choice and social interaction with other people ■ Support the social cohesion within our community by maintaining and developing social capital ■ To support service users and with their service providers within the care sector.

■ To

work with the relevant authorities to promote the views, needs, rights and aspirations of the voluntary sector in providing a day opportunity service.

We are now based in Hockley where we are more accessible to more service users in the Hockley, Ladywood, Aston, Handsworth areas where 85% of our beneficiaries live. We have a Quality Assurance Framework which monitors the quality and safety of our service for example we capture the customer experience of our service users through the deployment of evaluation forms wherein we ask our service users to complete regularly. Outcomes from such surveys feed into service improvements such changes in the content of activities. Our service makes a lasting difference to people’s lives as we carry out activities which develop new skills and abilities. For example, our volunteers with experience in the care sector carry out the following activities 2 days per week: ■ Arts and Crafts ■ Fitness Classes ■ Bingo ■ Reminiscing classes for those with dementia ■ Knitting classes ■ Drop In/Movie Afternoon ■ Story Telling Sessions

In previous years our funders have been:

We also have a mini-bus which allows us to offer a pick-up and drop-off service. This allows service users to attend who may have mobility problems or have difficulty finding transport. This also means we can reach a wider range of people. Our service is bespoke to the needs and preferences of our service users and so we provide a range of therapeutic activities to maintain and improve the physical and mental wellbeing of service users whilst providing a welcome break from the caring role of their loved ones. As a not for profit organisation all proceeds from the day care service is invested back into the service so that we can continue to deliver a high quality service for our service users. We would be grateful if you could provide us with funding at your discretion which we will put towards the running costs of the day centre, wherein we currently also provide a hot meal daily for our service users and towards the transport costs. Please let me know if you need any further information and thank you for your consideration. â–

Fiona Latchman, Chair 0121 523 9690/07748 475 834

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ICC United Kingdom’s Official G20 Publication

G20 Contacts Country


British Business Group

UK Government


Camara Argentina de Comercio Av. Leandro N. Alem 36 C1003AAN Buenos Aires Argentina T: +54 11 530 09056 F: +54 11 530 09036 E: iccargentina@cac.com.ar

British Argentine Chamber of Commerce 65 Brook Street, London W1K 4AH T: +44 (0) 20 7495 8730 E: administration@baccnetwork.com

Department for International Trade Argentina British Embassy, Dr. Luis Agote 2412 C1425EOF Buenos Aires, Argentina T: +54 (11) 4808 2200 E: BAires.AskComm@fco.gov.uk

ICC Australia Level 3, Commerce House, 24 Brisbane Avenue Barton, ACT 2600 Australia T: +61 2 6270 8000 F: +61 2 6273 3196 E: ceo@iccaustralia.com.au

Australia-United Kingdom Chamber of Commerce Australia Centre, Strand, London WC2B 4LG T: +44 (0)20 7099 8444 E: hello@australiachamber.co.uk

ICC Brazil Rua Surubim, 504 – 12° andar – Brooklyn Novo Sao Paulo 04571-050, Brazil T: +55 11 3040 8832 E: karim.aguilar@iccbrasil.com

Brazilian Chamber of Commerce in Great Britain 14-16 Cockspur Street, London SW1Y 5BL T: +44 (0)20 7389 0631

ICC Canada 420 – 360 Albert Street Ottawa ON K1R 7X7, Canada T: +1 613 238 4000 F: +1 613 238 7643 E: info@chamber.ca

Canada-UK Chamber of Commerce Canada House, Trafalgar Square London SW1Y 5BJ T: +44 (0)207 930 4553









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China Chamber of International Commerce c/o 8th Floor, CCOIC Building, No.2 Huapichang Hutong, Xicheng District 100035 Beijing China Tel: +86-10 82217812 / +86-10 82217878 / +86-10 68025737 Fax: +86-10 68045253 Email: intlgj@ccpit.org

Cámara de Comercio Argentino-Británica Av. Corrientes 457 piso 10, C1043AAE Buenos Aires T: +54.11.4394-2762 F: +54.11.4326-3860 E: info@ccab.com.ar

Australian British Chamber of Commerce 3 Spring Street, Sydney NSW 2000 T: +(61) 02 9247 6271 E: abcc@britishchamber.com

British Chamber of Commerce in Brazil Rua Ferreira de Araújo, 741 / 1st floor Pinheiros São Paulo, SP – Brazil 05428-002 T: +55 21 2277 0100

The British Canadian Chamber of Commerce 1411-215 Fort York Blvd, Toronto, ON M5V 4A2 Canada T: 416-816-9154 E: idalia@bcctc.ca China-British Business Council 3rd Floor, Portland House, Bressenden Place, London SW1E 5BH T: +44 (0)20 7802 2000 E: enquiries@cbbc.org China-British Business Council The British Centre, Room 1001, China Life Tower, 16 Chaoyangmenwai Avenue, Beijing 100020 T: +86 (0)10 8525 1111 E: enquiries-beijing@cbbc.org.cn

ICC France 9, rue d’Anjou, 75008 Paris France T: +33 1 42 65 12 66 F: +33 1 49 24 06 39 E: icc-france@icc-france.fr

French Chamber of Great Britain Lincoln House, 4th Floor, 300 High Holborn London WC1V 7JH. T: +44 (0)20 7092 6600 E: mail@ccfgb.co.uk

ICC Germany Wilhelmstr. 43G, 10117 Berlin / P.O. Box 80432, 10004 Berlin Germany Tel: +49 30 200 73 63 00 Fax: +49 30 200 73 63 69 Email: icc@iccgermany.de

German-British Chamber of Commerce & Industry 16 Buckingham Gate, Westminster, London SW1E 6LB T: +44 (0) 20 7976 4100

ICC India Federation House, Tansen Marg New Delhi 110 001 India T: +91 11 23322472 / 23738760 F: +91 11 23320714 / 23721504 Email: iccindia@iccindiaonline.org

ICC Indonesia Tempo Pavilion 1 Building 8th Floor, Jl. HR. Rasuna Said Kav. 11, 12950 Jakarta Indonesia T: +62 21 29667914 F: +62 21 29667915 Email: icc@iccindonesia.org

Franco-British Chamber of Commerce 63, Avenue de Villiers, 75017 Paris France T: +33 (0)1 53 30 81 30 E: information@ francobritishchamber.com

British Chamber of Commerce in Germany Andreas Meyer-Schwickerath, Director & Member of the Board. Friedrichstr. 140, 10117 Berlin, Germany T: +49 (0)30 206 70 80, F: +49 (0)30 206 70 829 E: info@bccg.de UK-India Business Council 12th Floor, Millbank Tower, 21-24 Millbank London SW1P 4QP. T: +44 (0)20 7592 3040 E: enquiries@ukibc.com UK-India Business Council 16th Floor, Tower 9A, Cyber City, DLF City Phase II, Gurgaon Haryana – 122002 India T: +91 (0) 124 4155 700 E: enquiriesindia@ukibc.com UK-ASEAN Business Council 12th Floor Millbank Tower, 21-24 Millbank London SW1P 4QP T: +44 (0)20 7828 3431 E: info@ukabc.org.uk British Chamber of Commerce in Indonesia Wisma Metropolitan 1 F/15Jin. Jend. Sudiman Dav. 29-31 Jakarta, 12920 Indonesia. T: +62 21 5229453 F: +62 21 5279135 E: uksme@britcham.or.id

Department for International Trade Australia Level 16, Gateway Building, 1 Macquarie Place Sydney, New South Wales 2000 T: +61 (0) 2 9247 7521 E: uktisydney@fco.gov.uk

Department for International Trade Sao Paulo British Consulate-General Rua Ferreira de Araujo 741 - 2 Andar 05428-002 Pinheiros Sao Paulo-SP T: +55 11 3094 2700 E: DITBrazil@fco.gov.uk

Department for International Trade (DIT) Toronto 777 Bay Street, Suite 2800, Toronto Ontario M5G 2G2 Investment enquiries +1 416 593 1290 extension 2254 Trade enquiries +1 416 593 1290 extension 2259 E: maria.diakos@mobile.trade.gov.uk Department for International Trade Beijing British Embassy 11 Guang Hua Lu 100600 Chaoyang District Beijing, China T: +86 (0)10 5192 4000 E: commercialmail.beijing@fco.gov.uk

Department for International Trade Lyon Le Lugdunum, 5, place Jules Ferry 69006 Lyon France T: +33 (0) 1 44 51 34 00 E: commercialenquiries. paris@fco.gov.uk

Department for International Trade Berlin British Embassy Wilhelmstr. 70 10117 Berlin T: +49 (0) 30 204 570 E: DITGermany@ mobile.trade.gov.uk

Department for International Trade Duesseldorf British Consulate-General Oststrasse 86 40210 Duesseldorf T: +49 (0)211 94480 E: DITGermany@ mobile.trade.gov.uk

D epartment for International Trade Delhi British High Commission Shantipath, New Delhi Chanakyapuri 110021 T: +91 (11) 2419 2100 E: ditindia@fco.gov.uk

Department for International Trade Indonesia British Embassy Jl. Patra Kuningan Raya Blok L 5-6 Jakarta 12950 Indonesia T: +62 (0)21 2356 5200 E: DITJakarta.Enquiries@fco.gov.uk



British Business Group

UK Government


ICC Italy Via Barnaba Oriani, 34 00197 Rome Italy T: +39 06 42 03 43 01 F: +39 06 48 82 677 E: icc@iccitalia.org

Italian Chamber of Commerce and Industry for UK 1 Princes Street, London W1B 2 AY T: 020 7495 8191 E: info@italchamind.org.uk

Department for International Trade Italy British Consulate General Via San Paolo, 7 20121 Milan T: +39 02 7230 0234/ 02 723001 E: DIT.Italy@fco.gov.uk

ICC Japan 4th Floor, Marunouchi 2-chrome bldg., Marunouchi 2-5-1, Chiyoda-ku Tokyo 100 0005 Japan Tel: +81 3 3213 8585/6 Fax: +81 3 3213 8589 Email: icc@iccjapan.org

Industry in the United Kingdom Salisbury House, 29 Finsbury Circus, London EC2M 5QQ. T: 020 7628 0069 E: email@jcci.org.uk


The British Chamber of Commerce for Italy PIva 01478780156 - Via Dante 12, 20121 Milano, Italy T: +39 02 877798 F: +39 02 86461885 E: bcci@britchamitaly.com

British Chamber of Commerce in Japan 12F Ark Mori Building, 1-12-32 Akasaka Minato-ku Tokyo, Japan 107-6012. T: +81 (0) 3 6426-5739 F: +81 (0) 3 6426-5749 E: info@bccjapan.com

Department for International Trade Tokyo 102-8381 TokyoChiyoda-ku, No 1 Ichiban-cho, British Embassy Japan T: +81 (3) 5211-1100 E: info@exporttojapan.co.uk

Japanese Chamber of Commerce and


Department for International Trade Mexico City British Embassy Rio Lerma No.71, 06500 Col. Cuauhtemoc Mexico City Mexico T: +52 (55) 16703200 E: uktimexico@fco.gov.uk

ICC Mexico Indiana 260, Piso 5, Oficina 508, Col. Ciudad de los Deportes, Del.Benito Juarez Mexico, D.F. 03710 Mexico T: +52 55 5687 2203 / 5687 2207 F: +52 55 5687 2628 E: ygonzalez@iccmex.org.mx / ablanco@iccmex.org.mx

Mexican Chamber of Commerce in Great Britain 1 Northumberland Avenue, London WC2N 5BW T: +44(0)207 8725 775 E: contact@mexcc.co.uk

ICC Russia 15/8 Rochdelskaya str. Moscow, 123022 Russia Tel: +7 495 720 50 80 Fax: +7 495 720 50 81 Email: o.schedrakova@iccwbo.org

Russo-British Chamber of Commerce 11 Belgrave Road, London SW1V 1RB T: +44 (0)207 931 64 55

ICC Saudi Arabia King Fahad Road (South), Council of Saudi Chambers Building, 11474 Riyadh P.O. Box 16683 Saudi Arabia Tel: +966 1 218 2196 / +966 1 218 2304 Fax: +966 1 218 2484 / +966 1 218 2111 Email: aalenazi@csc.org.sa

Saudi-British Joint Business Council 23 Grafton St, London W1S 4EY T: +44(0) 20 7824 1933 E: info@sbjbc.org

South Africa

ICC South Africa Chamber House, 24 Sturdee Avenue Rosebank, 2196 (PO Box 213 – Saxonwold 2132) Johannesburg, Gauteng, South Africa Tel: +27 11 446 38 00 Fax: +27 865 28 1746 Email: icc@sacci.org.za

Business Chamber of Business in Southern Africa British Chamber of Business c/o British Consulate 15th Floor, Norton Rose House 8 Riebeeck St, Foreshore Cape Town T: +27 (0)21 418 3764 E: capetown@britcham.co.za

Department for International Trade South Africa Dunkeld Corner 275 Jan Smuts Avenue, Dunkeld West Johannesburg 2196 South Africa T: +27 (0) 11 537 7000 E: SATrade@mobile.trade.gov.uk

South Korea

Chamber of Commerce Bldg 39 Sejongdaero, Joong-gu Seoul 100-743 T: +82 2 60 50 35 41 F: +82 2 60 50 39 10 E: icckorea@korcham.net

British Chamber of Commerce in Korea 14th Floor, The-K Twin Towers, 50, Jong-ro 1-gil, Jongno-gu Seoul, Korea 03142 T : +82-2-6365-2300 F : +82-2-6365-2301 E : administrator@bcck.or.kr

Department for International Trade South Korea British Embassy Seoul Sejong-daero 19-gil, 24 Jung-gu Seoul 04519 South Korea T: +82 (0)2 3210 5500 E: Investuk.Korea@fco.gov.uk E: Trade.Korea@fco.gov.uk


ICC Turkey Dumlupinar Bulvari, 252, (Eskisehir Yolu 9. km) Ankara, 06530 Turkey Tel: +90 312 219 4254 / +90 312 219 4255 Fax: +90 312 219 4258 Email: icc-tr@tobb.org.tr

The British Chamber of Commerce of Turkey Suzer Plaza Harbiye Mh. 34367 Sisli/Istanbul, Turkey T: +90 (212) 249 04 20

Department for International Trade Istanbul British Consulate-General Mesrutiyet Cad No 34 Tepebasi Turkey T: +90 212 334 64 00 E: uktiturkey@fco.gov.uk


United States Council for International Business 1212, Avenue of the Americas New York, NY 10036 United States T: +1 212 354 44 80 F: +1 212 575 03 27 E: news@uscib.org

British American Business 12 Phillimore Walk, West Wing 2nd Floor London W8 7RX T: +44 (0)20 7290 9888 E: ukinfo@babinc.org

Department for International Trade USA British Consulate General New York 845 Third Avenue New York NY 10022 USA E: ResearchUSA@mobile.ukti.gov.uk


Saudi Arabia

British Chamber of Commerce Mexico Río de la Plata No. 30, Col. Cuauhtémoc Deleg. Cuauhtémoc, Mexico CP. 06500 T: +52 55 5256 0901 E: info@britchamexico.com

Russo-British Chamber of Commerce Galereya Aktyor Business Centre, 4th Floor, ul. Tverskaya 16/2, Moscow 125009 Russia T: +7 495 961 21 60. Maria Sarkisova, Commercial Manager. maria.sarkisova@rbcc.com

Saudi-British Joint Business Council King Fahad Branch Rd, Al Mutamarat Riyadh 12711, Saudi Arabia E: info@sbjbc.org

British American Business 52 Vanderbilt Avenue, 20th Floor, New York, NY 10017. T: +1 212 661 4060 F: +1 212 661 4074 E: nyinfo@babinc.org

Department for International Trade Moscow British Embassy 121099 Moscow 10 Smolenskaya naberezhnaya Russia T: +7 495 9567200 E: TradeInvestmentMoscow@fco.gov.uk

Department for International Trade Saudi Arabia British Embassy PO Box 94351, 11693 Saudi Arabia T: +966 (0) 11 4819 100 E: commercial.riyadh@fco.gov.uk

❙ 85

branch out and swipe your dream job

Branching out and changing the rules of job searching one swipe at a time. Pelago is a mobile app that connects job seekers directly to employers and hiring managers for entry to mid-level positions. Candidates create a profile and can upload their resume, pitch video and sample work – all while searching for jobs anonymously. Employers post jobs directly through Pelago, facilitating an immediate connection to potential candidates. Both candidates and employers see recommendations based on their selected search criteria. Pelago is an easy way to gauge mutual interest, build a relationship with the hiring manager and love your job search!

PELAGO PURPOSE Pelago is a simple, elegant and user-friendly dual-sided mobile platform that matches job candidates with available positions. Based on a variety of selected preferences each candidate has ability to locate jobs by distance, job type, salary, and industry. Companies see the most relevant candidates and have the ability to communicate immediately with matches. Pelago aids candidates in their job search effort by immediately connecting them with hiring managers, facilitating an initial chat in a sophisticated yet simple platform. Pelago is dedicated to transforming and reinventing the entire job search process by creating a social network with the specific purpose of connecting job seekers and employers who can transact together efficiently and quickly, removing frustration and inefficiency at every step. The job seeker gets the job faster and the employer fills the position quicker through Pelago.

Pelago allows you to connect immediately with the hiring manager. Pelago has an easy to use interface with sophisticated algorithms that identify positions that fit your background, skills or job search goals. Pelago offers a no hassle setup and eliminates the risk resumes or applications sitting in an inbox unread or unanswered.

Candidates are forcing a change in the hiring process. Gone are the days of a cover letter, paper applications, and long wait times for interviews. Job seekers are demanding prompt responses, engagement and instant gratification. Instead of sifting through numerous job boards and sending off resumes to cyberspace,

Pelago seeks to contribute to the larger community and has philanthropic efforts as a focus in all ventures. A portion of all Pelago profits support the Pelago Foundation, which focuses on educational opportunities, scholarships and community development projects worldwide.

Pelago is focused on the entry-level to mid-tier job market, historically a very underserved area of digital job seeking. Pelago also aggregates open positions from corporate sites and key job boards to give job seekers the largest database possible. Pelago allow employers to feature part time, full time, seasonal, temporary, commission, freelance, internship, contract, temp to hire, volunteer and other positions.

Positivity | Integrity | Passion | Diligence | Innovation | Reliability | Simplicity

PELAGO PLATFORM Pelago is often summarized as the Tinder for jobs. Pelago’s premise is to focus on people not paper, creating a positive environment for job seekers and employers to connect in a simple, sophisticated way. Pelago feels that both candidates and employers have more to convey than the traditional paper resume or antiquated job posting. It is simple to create and edit a profile for both a job seeker and an employer within the Pelago platform. Pelago allows both job seekers and employers to upload a pitch video featuring themselves and their work. Impact is gained from viewing a pitch video as you can gauge enthusiasm and get more in depth insight into qualifications and inspirations. Videos also provide a human element to the job seeking process – where the traditional resume and cover letter skip the critical human component. Pelago’s platform allows for a quick and efficient transaction between job seekers and employers. There is a double opt in method for both job seekers and employers, as they must both match before they are able to connect and message. Pelago uses swiping technology and intelligent matching algorithms to connect job seekers and employers. The speed at which they can connect is the base of Pelago’s platform which will revolutionize the process of job seeking and hiring. Direct connection allows hiring managers and job seekers to start an immediate conversation. Hiring managers can message with job seekers within the app and both parties can transact and vet one another, mutually deciding whether or not to move forward. Swiping is a major aspect of the user experience within Pelago. Job seekers swipe right to apply for jobs or left to pass on positions while employers swipe right to indicate interest or left to eliminate the candidate for that position. Pelago allows job seekers to quickly and easily sift through a number of available positions, while allowing companies to easily review and instantly connect with matching, qualified candidates. Connections allow five days for a conversation to be started. Either the job seeker or the hiring manager may extend the first message.

PELAGO PEOPLE & PLACE Stephanie Chard founded Pelago in Salt Lake City, Utah in 2016. Her inspiration for Pelago came from her frustration both as a job seeker and as a hiring manager. Stephanie discovered there was no user-friendly platform that facilitated job seekers and hiring managers to exchange information and connect in a user-friendly and expedited way. Stephanie also found that the traditional means of job seeking was not always positive, and generally frustrating, creating a negative association with the job searching process. Pelago allows users to transact efficiently while creating a positive experience around job seeking and hiring. Pelago, based in the Silicon Slopes, was created beyond the traditional borders of Silicon Valley and it is through these wider boundaries Pelago is able to invite a broader perspective into the organization. Stephanie is proud of Pelago’s core values which center around developing a positive job searching experience while contributing to the community at large through the Pelago Foundation.


Better business better world Inviting CEOs to join Business Sustainable Development Commission, Unilever, Giti and other corporate to adopt the Sustainable Development Goals and SDG Pyramid as a path to our shared value future. “Better Business Better World” is led by BSDC Commissioners and prepared by UN Foundation and Systemiq with the support of the Bill & Melinda Gates Foundation, the Rockefeller Foundation, the Australian Department of Foreign Affairs and Trade (DFAT), the Global Green Growth Forum (3GF), the Netherlands Ministry of Foreign Affairs (MoFA), the Norwegian Ministry of Climate and Environment, the Swedish International Development Cooperation Agency (Sida), and the UK Department for International Development (DFID). www.businesscommission.org

SDG Pyramid is a framework aligning United Nations’ seventeen Sustainable Development Goals with traditional roots of cultures and spiritual philosophies that have guided the lives of many community around the world for centuries, that is the harmony of people, ecological, Peace and partnership values. United in Diversity Foundation join Sustainable Development Solutions Network and Business Sustainable Development Commission for a “Better Business Better World”.


Profile for The Group of Nations

The official ICC UK G20 summit publication  

An In-depth dialogue of topics that relate to Uk businesses and G20 policy matters.

The official ICC UK G20 summit publication  

An In-depth dialogue of topics that relate to Uk businesses and G20 policy matters.

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