G8 Business Declaration
Joint Statement of the G8 Business Organizations

Confederation of British Industry – CBI
Confederation of Italian Industry – CONFINDUSTRIA
Federation of German Industries – BDIJapan Business Federation – Nippon Keidanren
French Business Confederation – MEDEF
Russian Union of Industrialists and Entrepreneurs – RSPPThe Canadian Chamber of Commerce
United States Council for International Business –USCIB
BUSINESSEUROPE

BDI - Federation of German Industries
The Voice of German Industry

BDI G8 Business Summit
25 April 2007www.bdi.eu
Page 2 of 6

We, the leaders of the key business organizations of the G8 countries have gathered on
25 April 2007 in Berlin to discuss urgent issues concerning the global economy. These
matters, and our deliberations on them, are to be taken up for consideration by the
Heads of State at the G8 Summit in Heiligendamm.
We are pleased to note that this year’s G8 summit which has "Growth andResponsibility" as its theme attempts to respond to the central challenges facing the
global economy. The G8 countries still account for 63% of global GDP, 60% of global
direct investment, and 50% of global trade. However, newly emerging countries areplaying a more important role in the global economy, which creates both opportunities
and challenges for global governance.
We emphasize that business makes substantial contributions to finding solutions tothese challenges. Our member companies are deeply engaged in the global economy.
They are the primary agents of economic activity, trade, investment, and technologicalinnovation. They drive growth and prosperity, create the jobs, provide the economic
basis for the social infrastructure and often have the innovative capacity to help
address the problems facing humanity. The business community is well aware of its
responsibility to work with governments to meet these challenges and realize theseopportunities.
We believe that there is a political responsibility to examine whether existing policies
are still appropriate and to establish new policy guidelines where reasonable. In thiscontext, the leaders of the G8 nations are confronted with a two-fold challenge. On the
one hand, they must increasingly keep a close eye on the conditions for sustaining theinternational competitiveness of companies in times of growing competition. On theother hand, they must recognize that effective responses increasingly requireinternational cooperation. In particular, this means intensifying the dialogue with
newly industrializing countries. Shaping globalization is a task not only for the G8
countries.
Therefore, we call on the leaders of the G8 countries to ensure the adoption,
promotion and implementation of the right set of initiatives and responses during theirsummit in Heiligendamm. We call on G8 governments to address mounting challenges
to the trading system, the international investment regime, the efficiency of capital
markets, the structure and rules for enforcement of intellectual property protection,and global environmental conditions, while keeping all energy options open. G8
governments must establish and maintain appropriate policies in these key areas sothat international business can play its part to promote sustainable economic growthand create the wealth essential for economic development.

BDI - Federation of German Industries
The Voice of German Industry

BDI G8 Business Summit
25 April 2007www.bdi.eu
Page 3 of 6

Growth and Free Trade: Concluding the Doha RoundThe successful conclusion of the current WTO round will increase economic growth,
reduce poverty, further integrate developing countries into the global economy, andimprove this vital global framework for expanding trade and investment. However, thenegotiations have dragged on for five years without any tangible result. Meanwhile,
protectionist pressures are growing in some G8 countries.

Action:G8 governments, as a matter of urgency and top priority, should take immediate action
to break the current political impasse of the Doha Round, particularly on agriculture,
to secure a result that includes reductions in trade-distorting agricultural subsidies andtariffs, a significant reduction in applied tariffs on manufactured goods in bothindustrialized and newly industrialized countries, substantial further liberalization of
trade in services, improvements in trade facilitation, and strengthened WTO rules. All
key players in the negotiations, including the newly industrialized countries, must
demonstrate the necessary flexibility to achieve an ambitious result.

Growth and Innovation: Fostering Intellectual Property Rights

Piracy of intellectual property remains a serious worldwide problem for business,governments and consumers. Even where countries have adequate policies andlegislation, effective enforcement is lacking. Intellectual property protection isessential to foster technological innovations and maintain the quality and safety of
products.

Action:G8 governments should increase their intergovernmental coordination to enforce
intellectual property rights and also engage in a coordinated, constructive dialogue
with newly industrializing and developing countries to improve enforcement
worldwide. They should also support business efforts to reduce the demand forcounterfeit products. We support the efforts of both business and governments tojointly address global counterfeiting and piracy and we support the development ofspecific joint strategies for consideration by the G8.

BDI - Federation of German Industries
The Voice of German Industry

BDI G8 Business Summit
25 April 2007www.bdi.eu
Page 4 of 6

Growth and Open Markets: Providing Freedom of Investment

Another challenge is the growing trend of governmental intervention—in a wide
variety of sectors—to block or impede cross-border investment in the name ofenhanced national security or to protect so-called strategic sectors of the economy.
Ironically, the main interventionists include the G8 countries, the very nations thathave gained most from open investment policies with strong protection for investor
rights. The task of safeguarding national security is legitimate, but it must not serve as an
excuse for arbitrary discrimination, unnecessarily burdensome regulation, or be used togain commercial advantage.

Action:G8 governments should take action at the highest level to avoid investment
protectionism and to reaffirm, in word and practice, the open investment policies andcommitments to investors’ rights that have served as a key agent of economic growth,
including technological innovation, in recent decades. Business calls for greatertransparency and predictability in government investment decisions.

Growth and Stability: Enhancing Efficient Capital Markets

The efficient functioning of international capital markets is crucial for global growthand prosperity. For several years hedge funds have played an important role in capital
markets. We see enhanced transparency as contributing to market discipline andreducing risk.

Action:G8 governments should address issues aimed at maintaining the stability of capital
markets, including the development by market participants of transparency standards
and options for mitigating financial market risk.

BDI - Federation of German Industries
The Voice of German Industry

BDI G8 Business Summit
25 April 2007www.bdi.eu
Page 5 of 6

Growth and Climate Protection: Strengthening eco–efficient Technologies

Given the evidence that global climate change is underway, there is a very high value
put on governmental and private sector cooperation to respond to growing energy
demand while addressing climate change risks through mitigation, sequestration andadaptation. It is in the fundamental long-term interest of industrialized and newly
industrialized countries to increase energy efficiency significantly in a manner that
promotes sustainable economic growth. Business is already taking important steps toincrease energy efficiency and to innovate new energy technologies. Consistent andcoordinated long-term governmental policies will help industry to step up its efforts toeffectively address the issue.

Action:G8 governments should promote, as an urgent matter, the creation of long-term value
for green house gas reductions and partnerships with rapidly industrializing countries.
They should develop long-term, market oriented policy frameworks to encourage
improvements in energy efficiency and the application of new technologies. Voluntaryinternational standards could play a role in this regard. Governments should not,however, attempt to dictate preferred technologies or energy sources, which would
only dampen innovation and stifle progress.

Growth and Development: Facilitating Private Sector Activity in Africa

Economic opportunities for Africa have improved: conflicts in several countries havebeen settled, and average growth rates have increased. However, deficits ininfrastructure, education, health, public governance and economic management persist.
The private sector is the driving force behind development. Poverty reduction strategies
will therefore only be successful if trade and private investment are facilitated. But
private sector involvement requires suitable framework conditions.

Action:G8 governments, in collaboration with African governments, should improve framework
conditions, particularly in public governance and property rights, and support newparticipants in development cooperation to follow internationally recognized standards.
As substantial public funds are still required for infrastructure, quality aspects and life
cycle costs should increasingly guide development projects. Public private partnerships
and means of protecting investments should be expanded.

Background Document
Main Areas of on-going WorkBDI - Federation of German Industries
The Voice of German Industry

BDI G8 Business Summit
25 April 2007www.bdi.eu
Page 2 of 8

1. Growth and Free Trade: Concluding the Doha–RoundWe emphasize that the WTO negotiations of the Doha Development Agenda must be
concluded successfully this year. The Doha round is the most important global politicoeconomic project at this time. We welcome the formal resumption of negotiations. A
successful round could achieve lasting improvements in the Framework conditions for the
global economy and establish a solid foundation for the further expansion of international
trade and cross-border investments. The Doha round could assist in integrating developing
countries into the world trading system, and thus contribute substantially to the fight against
poverty. All WTO members must therefore make the best use of the available opportunities toconclude the negotiations successfully.
Therefore, we urge the leaders of the G8 countries to reach the compromises that are so
urgently required. Flexibility and willingness to compromise are required of all key players in
the WTO negotiations, including the major newly industrializing countries. They must allcontribute substantially to the successful conclusion of the round.
We emphasize that the negotiations must not be allowed to fail due to conflicts overinternational agricultural trade. We support the reduction of trade-distorting agricultural
subsidies and tariffs. The objectives must be ambitious. While we acknowledge the politicalsensitivities surrounding this issue, the current offers by key players are insufficient.
We emphasize that despite the key role played by the agricultural negotiations the dismantlingof industrial tariffs and the abolition of barriers to the international trade in services must not
be neglected. In our view, the success of the Doha round hinges on whether it will succeed innoticeably improving the conditions for market access in the OECD and in newly
industrializing countries. The WTO negotiations must lead to a significant reduction in theapplied tariffs and non-tariff barriers in industrialized and newly industrializing countries, to afurther liberalization of trade in services and an agreement on trade facilitation. The
consolidation of the status quo will not be sufficient to provide new impetus to global
economic growth.
We emphasize that developing countries should be supported in integrating more strongly into
the global economic system. The further liberalization of the markets of the industrialized andnewly industrializing countries represents an important contribution in this regard. However,additional concrete assistance in strengthening the ability of the developing countries toexport goods and services is also important. Inter alia, this includes the modernisation ofcustoms procedures, a key element of trade facilitation and the support to ensure compliancewith international standards. Regional integration and the promotion of intra-regional trade play
an important role and should be supported whole-heartedly. We welcome the fact that theleaders of the G8 countries have recognized this, and that "Aid for Trade" has been made animportant component of development cooperation. Initial successes are encouraging, but muchwork remains.
We emphasize that the international trading system cannot be truly global without the RussianFederation’s membership in the World Trade Organization.

BDI - Federation of German Industries
The Voice of German Industry

BDI G8 Business Summit
25 April 2007www.bdi.eu
Page 3 of 8

2. Growth and Innovation: Fostering Intellectual Property Rights
Innovation is the crucial driver for long-term economic growth. Technical progress increases
productivity; it is the key factor in determining industry’s competitiveness. This not only
applies in the case of the G8 countries and the other highly developed economies, but
increasingly also in those newly industrializing countries that are developing clearly focused
innovation strategies. One key aspect of such entrepreneurial innovation strategies is a highdegree of protection of intellectual property. Intellectual property protection is essential tofoster technological innovations, to create the necessary incentives for investments and tomaintain the quality and safety of products.
We acknowledge that in most countries, substantive law often provides effective protection of
intellectual property, for instance by means of customs regulation, patents, trademarks or
copyrights. However, the effective enforcement of intellectual property rights remains to bestrengthened in many countries. In the case of an infringement, the holders of rights often do
not have a sufficient range of effective enforcement instruments at their disposal in order toeffectively combat counterfeiting and piracy. Counterfeiting and piracy not only result instaggering monetary losses for companies and governments worldwide, but also act as
disincentive for investment, creativity and growth and jeopardize consumers’ health. This
illegal activity can flood markets with inferior and sometimes lethal consumer products andhas been linked to organized criminal activity. Currently, it is estimated that approximately 23% of the hard goods traded across borders, roughly 200 billion US$, are affected bycounterfeiting and piracy. This percentage represents only a subset of the problem and whendomestic piracy and counterfeiting as well as Internet crime are considered, the percentage
becomes larger and the losses amount to many hundreds of billions of dollars across theglobal economy. In addition, such piracy reduces the entrepreneurial incentive to invest in
development of new products. An OECD study is currently examining the full extent of theeconomic impacts of counterfeiting and piracy.
We welcome this OECD initiative as a step towards understanding the full extent of damage
caused by counterfeiting and piracy. And we also point to a large number of other high-level
initiatives by which the private sector – recently also increasingly in collaboration with the
public sector – has implemented concrete measures for improving the level of protection for
intellectual property. ICC’s Business Actions to Stop Counterfeiting und Piracy (BASCAP)
represents a very good example of such private-sector initiatives by encouraging morevigorous government action.
We call on the leaders of the G8 countries to engage in a constructive dialogue with the newly
industrializing and developing countries in order to identify and contain the sources ofcounterfeit products.
First of all, reinforcing the fight against criminal networks that feed the markets withdangerous counterfeited goods could reduce significantly the losses of consumers andbusiness. To that aim, anti-laundering money measures and anti-corruption modalities (e.g.
confiscation and restitutions) should be reformed to comply with international standards suchas the Financial Action Task Force (FATF) recommendations.
Furthermore, it is important to agree on concrete measures among the G8 countries that canbe implemented immediately and that improve the protection of intellectual property, such as
linking our customs authorities with the help of new, computerised information systems. We

BDI - Federation of German Industries
The Voice of German Industry

BDI G8 Business Summit
25 April 2007www.bdi.eu
Page 4 of 8

support the leaders of the G8 countries in increasing public awareness of this issue in theindustrialized nations as well as in the newly industrializing nations and with developing
countries.
By conducting awareness campaigns, the private sector is also trying to enhance publicawareness of the fact that intellectual property has a substantial value. Starting with education
but not limited to such, the private sector intends to enhance public knowledge also on thesubstantial losses incurred when intellectual property theft is not acknowledged andaddressed. Campaigns such as the World Intellectual Property Day set up by the WorldIntellectual Property Organization (WIPO) for 26 April each year make a good starting point.
In this context, one could designate a certain week for such campaigns. By intensifying theexchange of information within the private sector and closely collaborating with theprosecuting authorities, we can also contribute considerably to combating piracy.
For this purpose, the private sector representatives of the G8 nations – together with theirrespective governments – are developing common prevention strategies designed to improve
the situation. These strategies are meant to increase the awareness of the private sector and to
improve the transparency of the measures (legal, political, business and technical) whichbusiness can already take. Further, common prevention strategies aim to give special guidance
to small and medium sized enterprises. The G8 countries believe that discussing prevention
strategies is an excellent starting point for additional joint actions.
Further improvements could include the enhancement of information exchange between the
G8 countries, engagement in a coordinated, constructive dialogue with newly industrializing
countries, support for capacity-building and the creation of an improved international legal
framework for combating counterfeiting and piracy. Such capacity-building could even be
integrated into an existing anti-counterfeiting intergovernmental organization such as theWIPO, benefiting from its significant experience in that particular field and its extensive
network.
3. Growth and Open Markets: Providing Freedom of Investment
We emphasize the importance of open markets for sustainable growth and lasting prosperity. The
more open the markets are, the larger the incentive is to acquire individual skills and to develop
new products and procedures through innovation. Countries with open markets benefit from aninternational exchange of ideas, and thereby take part continuously in technological progress.
Foreign direct investment has played and will continue to play an important role in thedevelopment of economies in many regions of the world.
We note that the global economic integration has increased in depth and in breadth. Global
foreign direct investment increased by 27% in 2005, reaching 916 billion US$, of which 41%
was invested in newly industrializing and less developed countries. Cross-border mergers
were significant contributors to this growth in foreign direct investments. In 2005, 30% of all
M&A activities represented cross-border transactions.
We are concerned about the political influence that is increasingly being exerted over crossborder investments. A variety of reasons are used as a justification for reviewing, regulating andrestricting cross-border investments. Specific statutory provisions have been enacted or are being

BDI - Federation of German Industries
The Voice of German Industry

BDI G8 Business Summit
25 April 2007www.bdi.eu
Page 5 of 8

considered in individual countries to prevent foreign ownership. In addition, there is a wide range
of informal barriers that may continue to impede foreign direct investment.
We agree that investments and mergers should take place within a secure and transparent legal
framework. The respective rules and provisions should be clearly defined, and detailed
procedures should be established specifying the decision making process. Also, the legal
provisions should be transparent and predictable and conform to international commitments (e.g.
GATS). As a matter of principle, the origin of the investor should not play a role in this context.
The task of safeguarding national security is legitimate, but it must not serve as an excuse forarbitrary discrimination, unnecessarily burdensome regulation, or be used to gain commercial
advantage. National security concerns must not be used as an instrument to protect specificindustries from foreign competition.
We welcome the fact that the OECD has incorporated the issue of freedom of investment in its
work programme. First analyses have led to an increase in transparency concerning theregulation of cross-border investments in industrialized countries. In order to address the issue
appropriately and to advance the concepts underlying freedom of investment, the OECD requires
the political support of its members, in particular from the G8 countries.
We emphasize that G8 governments are committed to open investment policies. They shouldtake action at the highest level to avoid investment protectionism and to reaffirm, in word andpractice, freedom of investment and the commitments to investor rights that have served as a key
agent of economic growth, and technological innovation, in recent decades.
We call on the leaders of the G8 countries to make every effort to support the OECD in its
work in promoting freedom of investment. Proposals should be made on the basis of ananalysis of the effects of the various legal and political approaches as to how transparency,
accountability, and proportionality in regulating investment, mergers, and participation in an
economy can be established. Restrictions on foreign investment should only be permissible ifthey are required as a last line of defence to safeguard key security interests, and if theseinterests cannot be safeguarded by less restrictive means.
4. Growth and Stability: Enhancing Efficient Capital Markets
We agree that international capital markets represent an important contributing factor to an
economy’s success. Their efficient functioning is a crucial condition for global growth andprosperity. Within the financial sector, hedge funds have for several years been among thestrongest-growing industries. Hedge funds facilitate the price determination process andeliminate imbalances, thereby exerting a stabilising effect. At the same time, they reduce risk
premiums and contribute to an efficient distribution of risks.
We are also aware of the potential systemic risks to the stability of international financial
markets that are associated with the large investment volumes of hedge funds. Globally, 9,000
hedge funds currently manage assets of approximately 1.5 trillion US$. However, thisrepresents only a small fraction when compared to the global market capitalization.
We emphasize that even today, hedge funds are already subject to regulations, albeit of adifferent type and extent, depending on the country concerned.

BDI - Federation of German Industries
The Voice of German Industry

BDI G8 Business Summit
25 April 2007www.bdi.eu
Page 6 of 8

Therefore, we welcome the fact that improved transparency and systemic stability of thefinancial markets in particular with respect to hedge funds are to be discussed within thescope of the G8 summit. Enhanced transparency could increase market discipline and reducethe "counterparty risk", which would make it easier for monetary authorities to address
undesirable developments and risks.
We call on the leaders of the G8 countries in particular to allow for the industry’s ability to
self-regulate. One approach worth considering is a voluntary Code of Conduct that focuses on
the hedge funds’ quality of corporate governance and risk management. We encourage
governments of the G8 countries to support the market by defining transparency standards.
5. Growth and Climate Protection: Strengthening eco–efficient Technologies
We emphasize the necessity for responsible growth. This means that the development of the
global economy, global climate protection and the worldwide increase of energy efficiency
have strong links. We need a strategic partnership among the G8 countries and the major
newly industrializing countries in order to create dependable and sustainable Framework
conditions for responsible growth. The partnership must focus on improving access toreliable, affordable and climate-friendly energy services while ensuring power supply
security.
Given the evidence that global climate change is underway, there is a high value placed on
governmental and private sector cooperation to respond to growing energy demand while
addressing climate change risks through mitigation, sequestration and adaptation. A joint
approach by the G8+5, which together account for approximately two thirds of global CO2
emissions, would represent a crucial signal in this regard. Collective actions by thesecountries are being encouraged, with respect to the multiplicity and flexibility in approaches
in accordance with their historical, geographical and cultural backgrounds as well as
development stages of the economies.
We are aware that according to estimates by the International Energy Agency, the global
demand for energy—if left unchecked—would increase by a third by the year 2020. However,in light of the risks of climate change, it is in the fundamental interest of the industrialized, as
well as the newly industrializing countries to significantly increase energy efficiency, and tominimize the increase in energy demand. Business is already taking important steps to increaseenergy efficiency and to develop and deploy new energy technologies. The use of renewableenergies is to be expanded in a commercially efficient manner. Moreover, great efforts are
required in order to capture the CO2 emanating from the fossil fuel combustion process andstore it in geological formations, clearing the way to a low-carbon future. And civil nuclear
power and clean-coal technologies are likely to play a role in increasing the proportion of
low-carbon electricity generation.
We support the G8 in assuming a leading role regarding concrete measures for the intelligent
management of energy. We must continue to collectively advance the development and theapplication of highly efficient technologies. Therefore, it is crucially important tosignificantly increase research and development expenditures and to create Framework
conditions that enable companies to invest in innovative technologies and procedures in ahighly competitive environment.

BDI - Federation of German Industries
The Voice of German Industry

BDI G8 Business Summit
25 April 2007www.bdi.eu
Page 7 of 8

We agree that resolute action is required to limit and adapt to global climate change.
Therefore, we call on the governments of the G8 countries, working in partnership with
rapidly industrializing countries, to promote creating long-term value for green house gas
reduction and to support a long-term, market-based climate policy framework beyond 2012 inorder to provide incentives for private-sector investments in the innovation and themodernisation of the current energy systems whose value can be ensured in the long term.
Moreover, we encourage governments of the G8 countries to work with business and otherpartners to develop voluntary international efficiency standards. The distribution of climatefriendly products, systems and services by our companies represent great opportunities for
growth and employment.
6. Growth and Development: Facilitating Private Sector Activity in Africa
We agree that the overall economic opportunities for Africa have improved. On the one hand,conflicts in several countries were settled over recent years, and democratic processes havebegun. On the other hand, annual average growth of African economies amounted to between
4.6% and 5.9% between 2003 and 2006. The World Bank lists two African countries – Ghana
and Tanzania - among the ten countries that have achieved the greatest progress globally inreforming their economic framework conditions.
However, we also acknowledge that Africa as a continent has not yet started on a path ofsustainable, self-supporting economic growth. Insufficient infrastructure, deficits in the
education and health sectors, lack of transparency and public governance, and poor economic
management represent obstacles to the development of many African countries. The United
Nations’ Millennium Development Goals (MDGs) will only partially be achieved in Africa.
We emphasize that the private sector is the driving force behind a country’s economic
development – and can thereby contribute to its social development. Strategies for reducing
poverty will only be successful if trade and private investment are facilitated. But markets canonly be developed if the framework conditions are suitable for private-sector involvement.
We call on the leaders of the G8 countries to work together with the partner governments in
Africa towards improving the framework conditions for private-sector involvement in Africa,
especially by improving governance. This includes measures to enhance accountability andtransparency – in particular in public procurement - as well as measures to improve crossborder procedures and the enforcement of contractual claims and private property rights.
We call on the leaders of the G8 countries to assist the new participants in development
cooperation to follow internationally recognized standards concerning human rights, rule oflaw, anti-corruption and environmental protection.
We emphasize that substantial public funds are still required for infrastructure (transportation,energy, water). At the same time, the quality of development projects must be improved. In
the preparation phase, life cycle costs, the ability to ensure a long-term operation and otherquality aspects should increasingly be taken into account.
We emphasize that private investment in Africa should be supported in the long-term byexpanding public private partnerships and means of protecting investment.

BDI - Federation of German Industries
The Voice of German Industry

BDI G8 Business Summit
25 April 2007

Contact Persons
Campkin, Gary J.
Confederation of British Industry - CBI
Head, International Groupgary.campkin@cbi.org.uk
George, Shirley-Ann
Canadian Chamber of Commerce
Vice President, Internationalsgeorge@chamber.ca
Kinbara, Kazuyuki
Nippon KEIDANREN
Director International Economic Affairs Bureau
kinbara@keidanren.or.jp
Kraus, Daniel
Confederation of Italian Industry - CONFINDUSTRIA
Director European Affairs
d.kraus@confindustria.it
Kuznetsov, Andrei V.
Russian Union of Industrialists and Entrepreneurs – RSPP
Director Department of International Cooperation
kuznetsovav@rspp.net
Molinier, André-Luc
French Business Confederation - MEDEF
Director European Affairsamolinier@medef.fr
Robinson, Peter M.
United States Council for International Business - USCIB
President and CEO
probinson@uscib.org
Schall, Dr. Gunter
Federation of German Industries - BDI
Director of Section, Foreign Economic Policy, Trade and Development Policyg.schall@bdi.eu
Van den Hoven, Adrian
BUSINESSEUROPE
Director of the International Affairs Department
a.vandenhoven@businesseurope.eu

www.bdi.eu
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