Brussels, 13 November2019
Joint Business Position on the Modernization of the OECD Arrangement
Since its introduction in 1978, the OECD Arrangement on Officially Supported Export Credits has served as a key tool in creation of a level playing field in international markets by successfully ensuring that competition amongst exporters is based on the quality and price of goods and services rather than on the favorability of public financial support.
However, as the Arrangement passes its 40th birthday, it increasingly faces important limitations in light of key changes to the global trade and investment landscape. Such changes relate especially to the emergence of new significant players unbound by Arrangement rules, as well as the increasing importance of global value chains.
The changing environment has placed increasing pressure on the Arrangement and in some cases undermined its ability to fulfil its purpose, as evidenced by Participants seeking avenues to circumvent it by developing products outside the Arrangement. Today, Arrangement-regulated activity amounts to only 36% of the total Medium and Long Term Activities of Export Credit Agencies (ECAs).
A fundamental modernization of the Arrangement is much needed and must not be delayed. Making it fit for purpose while ensuring a global level playing field is essential, and there are several immediate updates of particular consequence for the business community that can be implemented now.
Businesses across the OECD commit themselves to support the OECD in its mandate to finding solutions to social, economic and environmental challenges. Although ECAs have no sustainable development mandate per-se, many of their activities impact sustainable development, especially within developing countries. For example, through exports OECD-businesses provide infrastructure and contribute to the creation of jobs, the provision of technology, knowledge and expertise (technology spillovers).