export credit agencies/instruments/public contracting/global priorities

Export Credit Agencies

Governments often promote the exports and investments of domestic businesses by providing them with financial support in the form of credit or insurance for export or investment activities. Unfortunately, some companies that are supported by their home governments through these means resort bribing foreign officials to secure their businesses abroad.

With the input and encouragement of TI, the OECD Working Party on Export Credits and Credit Guarantees (ECG) agreed on an Action Statement ( english/ française) in December 2000 to address this problem. This was to ensure the implementation of the 1997 OECD Convention on Combating Bribery in business transactions benefiting from official export credit and insurance support.

The Action Statement urges Export Credits Agencies (ECAs) to:

inform exporters of the legal consequences of bribery
require a declaration from the exporter to the effect that the contract to be guaranteed or insured has not been obtained through bribery or corruption
threaten effective sanctions in case of violations and other appropriate measures

Prior to the ratification by all OECD states (except for the United States) of the Convention on Combating Bribery of Foreign Public Officials in February 1999, bribery of foreign officials was not illegal in the exporting countries. In fact, it was tax deductible in many countries, and it is safe to assume that many contracts financed, insured or guaranteed by ECAs in the past have been tainted by corruption.

Transparency International has been actively engaged in collaborating with the OECD Export Credit Group and its members in order to follow up on the implementation of the Action Statement and to promote its enhancement. Below, you will find TI’s main contributions since 2003:

- November 16, 2000, Informal Consultation in Paris. Presentation by Michael Wiehen on behalf on Transparency International:

eca_workgparty_16.11.00.pdf 76.57 kB

- November 3-4, 2003, Comments on Best Practices proposals. Presented by Michael Wiehen before the OECD Working Party in Paris on November 4, 2003:

bestpractice_ecg.mwiehen.pdf 171.91 kB

- April 23, 2003, Implementation of the ECG's Action Statement of December 2000 on Export Credit Support. Presented by Michael Wiehen before the OECD Working Party in Paris on 23 April 2003:

eca_2003.04.23_wiehen.pdf 83.25 kB

- April 22, 2005, Strengthening the implementation of the ECG's Action Statement of December 2000 on Bribery and Officially Supported Export Credits Approaches to key terms, working definitions and practical applications. Presented by Juanita Olava before the OECD Working Party in Paris on April 22, 2005:

ECG April 2005 meeting 19.04.05.pdf 78.73 kB

- October 10, 2005, Enhancing the ECG's Action Statement on Bribery and Officially Supported Export Credits (December 2000). Submission to the OECD - ECG October 25, 2005. Based on the presentation delivered by Juanita Olaya and Neil Stansbury to the OECD Working Party in Paris on October 10, 2005:

TI OECD ECA Submission 25 10 05.pdf 98.10 kB

To learn more about the work and collaboration between the public and the private sector, we invite you to browse through TI's activities in the private sector as well.

Other resourceful links on this issue

103rd Meeting of the OECD Working Party on Export Credits and Credit Guarantees (ECG) held on April 21 (afternoon) and 22 (morning), 2005

Export Credits and Bribery: review of responses to the 2004 revised survey on measures taken to combat bribery in officially supported export credits - situation as of 21 January 2005

Corner House Report 2003

ECA Watch