The often unnoticed body that holds global trade together

The International Chamber of Commerce (ICC) is one of the most influential organisations in the world of global trade and commerce. While its name may not always make headlines, its work impacts the products we buy, the services we use, and the economic connections that underpin the global marketplace.

But what exactly is the ICC, and why does it matter?

The ICC was established in 1919 in the aftermath of World War 1, when economies were struggling to recover, and nations sought to rebuild through trade. A group of visionary business leaders from different countries recognised that co-operation and clear rules could help revive international commerce. They called themselves “the merchants of peace,” highlighting their commitment to fostering collaboration rather than conflict.

Over the past century, the ICC has evolved with global trade, becoming a powerhouse of advocacy and a rule-setter enabling businesses of all sizes to operate seamlessly across borders. It operates in more than 170 countries — representing millions of companies, ranging from small businesses to multinational corporations. Headquartered in Paris, the ICC influences trade through a global network of national committees that ensure businesses in member countries have a voice on the international stage.

This extensive reach allows the ICC to address a wide range of trade-related issues, from local disputes to global challenges such as supply chain disruptions and policy uncertainties. One of the ICC’s most critical roles is its International Court of Arbitration, established in 1923. This body is the world’s leading forum for resolving commercial disputes. When businesses from different countries sign contracts, they often include an ICC arbitration clause. This clause ensures that any disputes are resolved fairly, efficiently and in a neutral setting, avoiding costly and time-consuming court battles.

SA’s commitment to the ICC

Since its inception, South Africa has been a committed member of the ICC, adhering to its rules and processes. This has significantly bolstered the country’s credibility as a reliable and responsible trading partner.

South Africa’s involvement in the ICC enhances its standing in global trade while giving local businesses access to international best practices and dispute resolution mechanisms. By aligning itself with the ICC, South Africa demonstrates its commitment to fostering open markets and upholding global trade standards.

The ICC works with organisations such as the World Trade Organisation and the UN to shape policies that foster international trade and economic growth. It simplifies trade by creating universally accepted rules that define the responsibilities of buyers and sellers in international trade agreements. It encourages companies to align their operations with global sustainability goals, promoting responsible and environmentally friendly business practices.

One of the ICC’s most notable contributions is its role as a rule-maker. For example, its Incoterms® rules, first published in 1936, are widely used in global trade. These rules clarify responsibilities for shipping, insurance and customs duties, reducing misunderstandings and making cross-border trade more efficient. It standardises international banking practices through its uniform customs & practice for documentary credits, used by banks worldwide to facilitate secure and reliable payments.

Why the ICC matters

The chamber’s work often goes unnoticed, but its impact is profound. By creating a framework of rules and standards, it reduces the risks and uncertainties of doing business internationally. This benefits not only large corporations but also smaller businesses that may lack the resources to navigate global trade complexities.

For South Africa, ICC membership has been a cornerstone of its global trade strategy, providing businesses with tools and systems to compete on the world stage confidently. Ultimately, the ICC plays a vital role in promoting economic stability and prosperity. It enables businesses to connect across borders, fosters innovation and helps create jobs worldwide.

So the next time you buy a product made halfway across the world, remember that the ICC likely had a hand in making it possible. It is, quite literally, the glue that holds global trade together.

• Bezuidenhout is the founder of international trade/banking FSP BeztForex.co.za and the global trade AI platform Zynched.com