Analysis by Steve Schifferes BBC News Online economics reporter

Digby Jones at the helm of the CBI

The CBI, which represents large British companies, is particularly concerned by the growing strength of protectionism across the Atlantic in the United States.

The EU is poised to introduce trade sanctions against the US following a bitter dispute over steel tariffs.

But the CBI is particularly concerned about developments in the defence industry, where a "Buy American" policy seems to be taking root after the terrorist attacks of 11 September 2001.

It is also concerned about the breakdown of the world trade talks two months ago in Cancun, Mexico, when rich and poor nations failed to reach agreement on the phasing out of agriculture subsidies which protect markets in Europe, the United States, and Japan.

The CBI wants the UK Government to use its influence on the US to ensure that British firms are not discriminated against, and that the US vigorously embraces free trade.

It argues that these concerns should carry even more weight next week, when President Bush is visiting the UK to confirm the special relationship forged during the war in Iraq.

It is expected that CBI members will be putting their concerns directly to the US Treasury Secretary, John Snow, who will be addressing the conference on Tuesday.

Mr Snow's predecessor, Paul O'Neill, addressed the CBI last year - and was promptly sacked by President Bush later in the same week as the administration restructured its economic team.

European worries

Top UK politicians - including the new leader of the opposition, Michael Howard, Chancellor Gordon Brown, and Trade Secretary Patricia Hewitt - will all be addressing the conference.

CBI director-general Digby Jones says that CBI members support a variety of political parties, but he welcomes the increased competition between the main parties following the Conservative leadership change.

One of the biggest concerns for the CBI is the new European constitution which is currently the subject of long and tortuous negotiations.

The CBI is worried that elements in the document will make Europe less competitive - including a general right to strike, and statements that economic policy and energy security policy are to be settled at the EU-wide level.

It fears that this could lead to tax harmonisation, especially of business taxes, which could force UK corporate taxes higher, and that Brussels might take control of the North Sea oilfields.

The CBI is polling its members at the moment on their attitudes towards the new EU constitution, and expects to publish the results early in the New Year.

Who's best for business?

With a General Election expected in around 18 months, all political parties are bidding to be seen as the natural party of business.

The CBI has praised the Chancellor of the Exchequer, Gordon Brown, for his macro-economic management of the economy, with low interest rates, inflation, and unemployment, and a steady rate of growth - which sets Britain apart from both the US and Europe.

However, it is also warning that the UK is becoming less competitive, because of increased taxes, more restrictions on hiring workers, and a deteriorating transport infrastructure.

The CBI has also warned that the public sector must become more efficient in delivering improvements in public services if it is to justify the increased taxes that have been collected.

This year the CBI will not be debating these points with the unions, who have been invited to attend but not speak at the conference.

But the CBI plans to invite new TUC boss Brendan Barber, and perhaps other trade union leaders, to a full debate on these issues next year, when they will probably be at the centre of the electoral debate.

The TUC and CBI are both rivals and partners in wooing the government for aid, especially in the manufacturing sector.

But Mr Jones got a a surprisingly favourable reception when he appeared at the TUC Congress in Brighton in September.