FROM THE OFFICE OF PUBLIC AFFAIRS

Today, the Organization for Economic Cooperation and Development (OECD) gave its formal approval of an agreement that calls for member export credit agencies (ECAs) to evaluate the environmental impact of the projects that they are considering.  The agreement lays out the procedures to be followed when performing an evaluation, and sets minimum environmental standards to be used.  

“This agreement helps to create a level playing field for U.S. exporters,” said John Taylor, Treasury Under Secretary for International Affairs.  “It will help to ensure that projects receiving financing by export credit agencies will meet clear and transparent environmental standards.”

The agreement marks the conclusion of several years of intensive negotiations among the members of this Paris-based multilateral organization, which has been at the center of this issue since the mid-1990s.  The U.S. highlighted the need for ECA environmental guidelines by bringing the issue to the G-7 in 1997.  In 1999, the G-7 and OECD Ministers both issued mandates for such work to begin.   Negotiations were carried out in the OECD Trade Committee’s Working Party on Export Credits and Credit Guarantees (ECG), which has competence for technical export credit issues. 

In 2001, the ECG sought approval of a draft agreement which reflected substantial movement on the part of its members.  However, the U.S. rejected it for failure to provide adequate assurances that appropriate environmental standards would be used, and for failing to provide basic transparency.  The current agreement reflects significant progress in both areas.

The agreement also achieves a measure of consistency with MDB-supported projects, which have long been evaluated for their environmental impact and which are supported by the same shareholders comprising the OECD.  In addition, the agreement is a significant step in leveling the playing field for U.S. exporters, who have had to comply with Ex-Im Bank’s rigorous environmental guidelines since 1995.

The Department of the Treasury is the head of the U.S. delegation to the OECD and chief negotiator on all export credit issues.  Treasury received strong support and active participation throughout the negotiations from the Department of State and the Ex-Im Bank, as well as the White House Council on Environmental Quality and the Environmental Protection Agency.

The following countries are members of the agreement:  Australia, Austria, Belgium, Canada, Czech Republic, Denmark, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Japan, Korea, Luxembourg, Mexico, Netherlands, New Zealand, Norway, Poland, Portugal, Slovak Republic, Spain, Sweden, Switzerland, Turkey, United States, United Kingdom.