Business presents recipe for job creation to G7 summit; rejects social clause; announces agenda for the WTO.

NEW YORK--(BUSINESS WIRE)--June 27, 1996--Job creation measures topped the list of business recommendations to the heads of state and government attending the June 27-29 Group of Seven summit in Lyons, which were released this week by the International Chamber of Commerce. Rejecting the use of trade measures with protectionist effects in pursuit of higher environmental and labor standards, the ICC called for greater flexibility in employment policies, noting a striking contrast between the U.S. economy and those of the European Union in their capacity to provide more employment. It also looked to the G-7 to lead other members of the World Trade Organization (WTO) in establishing a comprehensive agenda for that organization and achieving concrete results.

The ICC statement, "Growth, Employment and Trade," communicated to the summit leaders individually, stressed the importance of an open international trade and investment system as the mechanism for job creation. G-7 countries have a responsibility to create the conditions for solid and sustainable economic growth at home and to provide the leadership to maintain the momentum for liberalizing international trade and investment--a reference to the post-Uruguay Round trade agenda that will occupy the first ministerial meeting of the World Trade Organization (WTO) in Singapore in December."

The world's leading business organization, the ICC has over 7,000 member companies and associations from every business sector. Expressing profound concern at high unemployment in the world economy, the ICC noted that the use of trade sanctions to promote workers rights would threaten the jobs and livelihood of workers themselves.

In contrast to views expressed by the U.S. and several European governments, the ICC believes that the International Labor Organisation (ILO), not the WTO, is the competent intergovernmental organization to deal with the subject of labor standards.

According to the ICC, world business has three overarching priorities for the WTO in the years ahead:

-- to ensure that the agreements concluded in the Uruguay Round trade negotiations are implemented;

-- to complete the further business mandated by the Uruguay Round negotiations;

-- to launch an additional work program on new issues.

Among the ICC priorities for an additional WTO work program are further tariff reductions, customs modernization, and new work on trade and environment linkages. Welcoming the progress being made under the aegis of the OECD to negotiate a Multilateral Agreement on Investment (MAI), the ICC also called upon the WTO to begin building a solid consensus among its members for work on a truly global framework of disciplines to cover cross-border investment.

The U.S. Council for International Business (USCIB) is the American affiliate of the ICC. It also serves as the U.S. affiliate of the Business and Industry Advisory Committee (BIAC) to the OECD, and the International Organisation of Employers (IOE). As such, it officially represents U.S. business positions in the main intergovernmental bodies, and vis- -vis foreign business communities and their governments.

The ICC statement on behalf of world business to the heads of state and government attending the Group of Seven summit in Lyons is available on request from the U.S. Council for International Business. Tel: [phone]/Fax: [phone].

CONTACT: Ronnie Goldberg (USCIB, N.Y.) 212-354-4852

Lionel Walsh (ICC, Paris) 331-4953-2823