9 July 2008

G-8 Leaders Reiterate Commitment to Open Trade and Investment

The following was published on 9 July 2008 in “WorldTrade/Interactive”.

Leaders at this week’s G-8 summit in Japan reiterated their commitment to globalization and emphasized open trade and investment as key elements in strengthening domestic economies. Despite growing international skepticism about the benefits of trade amid rising food and fuel prices, job losses and other concerns, a declaration issued at the conclusion of the meeting said the leaders will continue to resist protectionist pressures against international trade and investment and to address the various political, economic and social challenges to extending globalization. Specific highlights of the declaration include the following.

Doha Round. Asserting that an ambitious, balanced and comprehensive Doha Round agreement is critical to economic growth and development and noting “the crucial stage of negotiations,” the leaders reiterated their determination to work urgently toward the conclusion of the negotiations and called on all WTO members to make substantial contributions with a view to establishing modalities for agriculture and non-agricultural market access and achieving positive and tangible results on services. They welcomed the convening of a ministerial meeting in Geneva starting July 21 and expressed support for a signaling conference on trade in services on the same occasion.

Investment. The declaration urged all countries to take steps to develop, maintain and promote regimes that welcome foreign investment, guarantee non-discriminatory treatment for foreign investment and ensure freedom to transfer capital and returns from investment. The declaration asserted that any foreign investment restrictions should be very limited, focusing primarily on national security concerns.

Corporate Social Responsibility. The leaders said they will promote corporate social responsibility, including through the encouragement of voluntary adherence to the relevant international instruments, standards and principles by companies from all countries, and encourage good corporate governance practices.

Corruption. The declaration called for emerging economies to accede to the OECD Convention on Combating Bribery of Foreign Public Officials in International Business Transactions and expressed a commitment to strengthening enforcement of this agreement by continuing effective monitoring through the implementation of a rigorous and permanent peer review mechanism. Leaders also endorsed an enhanced accountability report detailing the actions of each G-8 member to implement the anticorruption commitments they have undertaken in the G-8 and agreed to update this report annually.

Intellectual Property Rights. The G-8 countries committed to advancing existing anti-counterfeiting and piracy initiatives by promoting information exchange systems among their authorities and developing non-binding Standards to be Employed by Customs for Uniform Rights Enforcement (SECURE) at the World Customs Organization. They encouraged the acceleration of negotiations to establish the Anti-Counterfeiting Trade Agreement and the completion of those talks by the end of 2008.

Environment. The declaration emphasized the importance of expeditious discussions in the International Civil Aviation Organization and the International Maritime Organization on limiting or reducing greenhouse gas emissions in the international aviation and maritime sectors.

The leaders noted that market mechanisms such as emissions trading within and between countries, tax incentives, performance-based regulation, fees or taxes, and consumer labeling can help achieve emission reductions in a cost-effective manner and stimulate long-term innovatio