JS-2097: United States Secures Pathbreaking Agreement <script type="text/javascript"> var wmNotice = "UNT Web Archive - External links, forms, and search boxes may not function within this collection. Url: http://treas.gov/press/releases/js2097.htm time: 9:23:48 Sep 20, 2008"; var wmHideNotice = "hide"; var contextRoot = "https://webarchive.library.unt.edu/eot2008/"; </script> <script type="text/javascript" src="https://webarchive.library.unt.edu/eot2008/js/disclaim.js"></script> <br>to Open Bidding for Untied Aid Credits



	FROM THE OFFICE OF PUBLIC AFFAIRS November 12, 2004 JS-2097 United States Secures Pathbreaking Agreement to Open Bidding for Untied Aid Credits Twenty-five members of the Organization for Economic Cooperation and Development (OECD) that are Participants to the Export Credit Arrangement have agreed to a U.S. proposal to open the bidding process for projects in developing countries that are financed with untied aid credits. Untied aid credits are bilateral aid loans whose proceeds are supposed to be available to finance procurement from all countries. The U.S. government and American exporters have been concerned that this aid has primarily financed exports from donor country firms. With the support of Congress, the Bush Administration has sought OECD rules governing these aid loan programs over the last two years. Secretary John W. Snow and Under Secretary for International Affairs John B. Taylor spearheaded this multilateral initiative to open developing country markets. By opening these markets to effective international competition, this agreement will expand export opportunities under untied aid credit programs. It will increase the benefits of these aid programs to developing countries by ensuring that these countries have the widest choice of goods, services and technologies at the lowest prices. The two-year pilot agreement will commence on January 1, 2005. For the first time, the agreement will set multilateral requirements for OECD governments to report publicly on the details of their untied aid-financed projects 30 days before the bidding begins. The agreement also provides for minimum bidding periods of 45 days (90 days for projects of $70 million or more). These requirements will help U.S. exporters and other non-donor country exporters to identify and bid for these foreign contracts. To ensure that the bid awards for these untied aid projects are administered fairly, the agreement also includes a requirement for governments to report the outcome of each bid competition. The value of untied aid credits covered by this agreement has averaged over $7 billion annually since 1995, and were as high as $14 billion in 1996.