WORLD COMMERCE R EVIEW ISSN 1751-0023 VOLUME 8 ISSUE 1 ■ MARCH 2014 AMERICAN OIL FROM AMERICAN SOIL NEELIE KROES ARGUES THAT TAMING FINANCIAL MARKETS Q&A WITH CHRIS COPYRIGHT NEEDS TO BE IS A MUST FOR ACHIEVING FAULKNER, PRESIDENT & REFORMED FOR THE SAKE OF STABILITY CEO OF BREITLING ENERGY THE FUTURE ECONOMY WRITES DANIEL DăiANU CORPORATION THE GLOBAL TRADE PLATFORM - 0 . 0 8 6 3 4 8 controlling corporate travel spend is your top priority we belong in your world LZLY]LK @V\RUV^P[»ZHIV\[TVYL[OHUJVUULJ[PUNWLVWSL^P[O[OLPYKLZ[PUH[PVUZ·P[»ZHIV\[[YHUZMVYTPUN PUMVYTH[PVUPU[VZTHY[KLJPZPVUZ[OH[OLSW`V\THUHNLHUKJVU[YVSJVZ[Z;OH[»Z`V\Y^VYSKHUK ^OLU`V\THRL+PULYZ*S\IWHY[VMP[^LOLSW`V\ZLL`V\Y^VYSKTVYLJSLHYS`>LJHSSP[ .SVIHS=PZPVU·ILJH\ZL[OH[»ZL_HJ[S`^OH[P[NP]LZ`V\! UH[PVUHS3[K(SSYPNO[ZY .HPUPTTLKPH[LHJJLZZ[V`V\Y; ,L_WLUZLZKV^U[V[OLPUKP]PK\HSJOHYNLSL]LS =PL^HUKHUHS`ZLL_WLUZLKH[H^P[OPUKH`ZVMWVZ[PUNPUV]LYJ\YYLUJPLZ .LULYH[LKL[HPSLKYLWVY[ZPUQ\Z[TPU\[LZVUZWLUKPUNHJ[P]P[`WVSPJ`JVTWSPHUJL KLSPUX\LUJPLZHUKTVYL +PULYZ*S\I0U[LY *HSS\ZUV^MVYZVS\[PVUZ[OH[W\[PUMVYTH[PVUPUHUL^WLYZWLJ[P]L +PULYZ*S\I*VYWVYH[L'KPZJV]LYJVTcc^^^+PULYZ*S\IJVT 51.51 41151 corporate solutions from diners club international® 3<',B$'9B%X\LQJ%XV7UDYHOBLQGG $0 DN-11-00703 210mm x 297mm London Diners Club International - Buying Business Travel Magazine Sept/Oct Foreword Ukrainian prospects s a new ‘Unity Government’ gets down to work in Kiev, the factors determining the political and economic trajectory of Ukraine will be determined less by a tug of war between Russia and the West than by the actions and decisions of the leadership that emerges in Ukraine. The new leadership has to unify the opposition and build effective political and economic institutions. This opportunity was missed following the Soviet collapse in 1989 and the 2004 Orange ARevolution. Ukraine’s economic indicators over the past generation tell the story. In 1989 Ukraine’s GDP was slightly larger than its neighbour Poland. Today the economy of Poland is almost three times greater, following early and painful economic reforms. Regarding corruption, Poland ranks in the top quartile of Transparency International’s Corruption Perception index, Ukraine is on a par with Nigeria and Iran. Ukraine’s politicians have spent these years playing off the West and Russia, and extracting resources from both sides. Corruption amongst this group has been pervasive. One has to remember that the deposed President Yanukovych was elected following corruption accusations. Some European and Ukrainian officials have suggested that the EU Association Agreement should be signed immediately. This would be a mistake. Implementing the EUAA demands years of legislative work that are designed to bring Ukraine’s laws closer to Europe’s legal framework. There need to be elections for the presidency and the parliament. And there need to be negotiations involving the EU, US, Russians and of course the Ukrainians over how these elections will be managed so they are fair and ensure representative government. This will probably need constitutional reform. The West should also save Ukraine from default and prepare an emergency package of aid and credits. Longer-term help will have to be conditional on reforms similar to those undertaken by Poland over 20 years ago. This will not be enough to create a dynamic and prosperous Ukraine, but at least it should reduce corruption and ensure a representative and elected government is in place. ■ PHOENIX MULTIMEDIA PUBLISHERS SALES DIRECTOR ISSN 1751-0023 NR35 1PU Tom Forster David Thompson United Kingdom Roy Williams ©2014 The entire content of this SALES TEAM publication is protected by copyright, full www.worldcommercereview.com MANAGING EDITOR David Warmann details of which are available from the Tom Forster Phil Shaw publisher. All rights reserved. Tel: +44 (0)1986 892028 David Goldwin EDITORIAL DISCLAIMER Whilst every attempt has been made to ensure that at the time of Email: [email protected] Tom Page DESIGN AND PRODUCTION printing the magazine the information West Riding Media Solutions herein is accurate and up-to-date, the PRODUCTION publishers cannot be held responsible for Michael Day any inaccuracies that may have occurred within the content of the publication. CIRCULATION Andrew Kilby World Commerce Review ■ March 2014 1 Contents 6 26 American oil from American soil Taming financial markets is a must for achieving 6 In a Q&A with World Commerce Review, Chris Faulkner, 34 stability President & CEO of Breitling Energy Corporation, Daniel Dăianu outlines why the Bretton Woods spirit forecasts a golden era for oil and gas exploration and and logic need to be rediscovered production in America A European Glass-Steagall to preserve the single Modernising copyright for the digital age 38 market 12 Neelie Kroes says there is a great opportunity to Karel Lannoo argues for a structural separation in modernise the EU copyright framework to make it fit banking in an old-fashioned, rules-based approach for an ever-changing digital world Meet in Berlin Unveiling the hidden side of the counterfeit trade 42 If you are planning a congress or meeting, Berlin is the 14Grant Busby, Laure Tempier and Junko Yamamoto answer, write the Berlin Tourismus & Kongress discuss the World Customs Organization’s multi- pronged approach to the challenges posed by European companies need stronger signals to deliver counterfeiting and piracy 44 a real industrial renaissance Inconsistent and uncoordinated legislative initiatives Building trust in global supply chains have led to higher costs for businesses and added to 18 Globalisation has meant that supply chains have the amount of red tape in Europe, finds Markus Beyrer become longer and more complex, and securing these supply chains has become even more important, The obsession with regulation writes Philippe Amon 48 Robert Oulds argues that the European Commission’s attitude to regulation stymies innovation and harms Brand enforcement strategy; public and private economic growth 20 enforcement considerations Ronald Brohm writes that private intellectual property Strategic options for Europe’s future enforcement is becoming increasingly relevant since 52 The New Pact for Europe outline five possible strategic governments are tending to allocate fewer resources options for the future of Europe to this problem Europe - a time for change Intellectual property in the TTIP 56 Alisdair McIntosh writes that now is good time to 24 Lorna Brazell examines the issues to be discussed in draw breath and look forward to the challenges and the Transatlantic Trade and Investment Partnership opportunities ahead for the EU negotiations European elections ahead but no changes expected! Are the TTIP roadblocks for real? 58 Plus ça change... 26 What does rising anti-trade rhetoric imply for the The European Union suffers from a governance deficit, TTIP’s prospects, asks Suparna Karmakar particularly on economic matters, and the European elections will not change this, write Raoul Kirschbichler TTIP’ing in the right direction – what the new free and Mario Fantini 30trade agreement will mean for growth in Europe Håvard Sandvik looks at why the European Liberal Sport as a tool for economic and social engineering Forum convened a roundtable to assess the progress 62Mark van de Velde argues that officials should tread made and the obstacles to a new transatlantic free very carefully when promoting sports as a public trade agreement health instrument 2 World Commerce Review ■ March 2014 Contents 96 62 58 Base Erosion and Profit Shifting - business support for Better profits without increased sales or lower costs 64 collaborative solutions 90Christine Gerryn says that all companies should International tax rules have not kept pace with compare the cost effectiveness of credit insurance globalisation and the BEPS Action Plan seeks to with other methods of managing credit exposure remedy this, writes Will Morris AMBA accreditation – a mark of quality for top MBA Radical change on the way for Dutch royalty conduits 92programmes 66 Newly introduced Dutch ‘substance’ requirements Mark Stoddard writes about how the AMBA guides and an agreed change to the EU Royalty and Interest business schools in the development of their MBA and Directive may bring radical change to the way Dutch other business postgraduate programmes royalty conduits will operate in future, writes Jos Peters Rethinking corporate universities 96 Thomas Sattelberger argues that corporate More countries must push for deal to liberalize trade universities must evolve from being socialisation and 72in green goods and services knowledge transfer machines to helping their parent The International Chamber of Commerce writes about companies undertake effective transformation the latest step to move global trade talks out of the Doha Development Agenda deadlock and build on Munich students win ICC Mediation Competition 2014 momentum following the successful outcome of the 100 The International Chamber of Commerce report on WTO Ministerial Conference in Bali in December 2013 a highly successful 9th ICC International Commercial Mediation Competition Sharing the burden 74 Sohail Jaffer examines the future for pension plans in Management, the Brazilian way - inspiration and the Middle East and North Africa 102 perspiration build the future James Wright examines Brazilian innovations in MBA The continuing evolution of collaborative technologies courses 78 David Danto and Carol Zelkin say it’s not all about the hardware or software that an organization