The OECD Export Credit Group and the OECD Multinational Guidelines

At it's April 2003 meeting, the OECD's Export Credit Working Group agreed to promote the OECD Guidelines for Multinational Enterprises to their clients by providing information.

In the 2006 Annual Report on the OECD Guidelines, the Directorate for Financial and Enterprise Affairs of the OECD noted that thirteen out of 28 OECD Export Credit Agencies have failed to comply with this agreement.

The measures take by countries that have adhered to the Guidelines are outlined in Table I.1 on pages 16 and 17 of the 2006 OECD Annual Guidelines Report.

The OECD Investment Division has confirmed to ECA Watch that Austria, Belgium, Denmark, Hungary, Italy, Iceland, Ireland, Luxembourg, Mexico, New Zealand, Norway, Portugal and Slovakia "do not in any way link their export credit and other policies to the Guidelines".

Thus, despite their agreement to promote the Guidelines, which "are recommendations to international business for conduct in such areas as labour, environment, consumer protection and the fight against corruption", 13 of 28, i.e. almost half of OECD Member ECAs, do not.

Among the OECD ECAs which do promote the Guidelines, and therefore encourage their corporate clients to respect international labour, environment consumer protection and corruption standards, some go beyond just the provision of information and, at least on paper, more activley promote adherence to these standards.

The Netherlands for example, requires applicants to "state that they are aware of the guidelines and that they will endeavor to comply with them."

The UK's ECGD notes: "The UK Government encourages all multinational companies to adopt the recommendations on responsible business conduct contained in the 'OECD Guidelines for Multinational Enterprises'. ECGD's internal procedures will check on the consistency of the operations of its customers (both in the UK and overseas) with these recommendations, and in particular those relating to the environment, employment, combating bribery and transparency."

France requires companies to sign a letter acknowledging they are aware of the guidelines. The majority of OECD member ECAs however simply provide information about the Guidelines to prospective clients via a web link or sometimes through references on application forms for credit, insurance coverage or guarantees.