Oecd Agreement On Officially Supported Export Credits

In 1999, OECD ministers responded to NGO requests and commissioned the OECD`s ECG to develop environmental and sustainable development standards to support export credits. The negotiations resulted in a consensus that culminated in a „formal OECD recommendation on common approaches to the environment and officially supported export credits” in December 2003. The OECD has a long tradition of officially supported export credit rules dating back to 1963. The Regulation replaces the 2001/76/EC (officially supported export credits) and 2001/77/CE (framework agreement on the financing of officially supported export credits projects). To this end, the agreement limits the financing conditions (repayment terms, minimum premium rate, minimum interest rate) applicable to the provision of officially supported export credits, as well as the use by participants of related aid. The agreement contains several provisions on transparency between participants to ensure that these restrictions are effectively enforced. Some of the rules set out in the agreement are sectoral and contain in the sectoral annexes of the convention (known as „sector agreements”). There are currently six sectoral agreements covering export credits for ships (I), (II) nuclear power plants, (III) civil aircraft, (IV) renewable energy, climate change and climate change adaptation, as well as water projects, (V) rail infrastructure and (VI) coal-fired power plants. The agreement between the ship sector and the aviation agreements are particularly important because their participants are different from those of the general agreement, which is not the case for other sectoral agreements. The agreement applies to all officially supported export credits with a repayment period of two years or more. However, it does not apply to military equipment or agricultural raw materials. The SSU provides specific disciplines that can be applied to export credits that are officially supported for exports of sea, towing and hovercraft vessels.

The SSU was originally agreed in 1969 as a stand-along agreement; the dominant version of the SSU is listed in Schedule I of the Convention. The SSU participants are: Australia, the European Union, Japan, Korea, New Zealand and Norway. The SSU is managed by the OECD Shipbuilding Council (WP6) working group. In the 1990s, NON-governmental ORGANIZATIONs (NGOs) increasingly highlighted the emo for financing and guaranteeing exports in major projects, without conducting environmental assessments or complying with environmental standards. These critical NGOs then formed the ECA-Watch network. It ensures that the EU implements the Organisation for Economic Co-operation and Development (OECD) agreement, which sets rules for national export credit agencies to provide financial assistance to their exporters. The Organisation for Economic Co-operation and Development (OECD) was established in 1961 to create a forum for discussion of economic, development and trade issues between like-minded countries. The OECD currently has 34 member states.

The OECD`s Export Credit and Credit Guarantees Working Group (ECG) is an OECD body established in 1963 to advance the OECD`s work in the area of export credits. This practice note contains guidance on Mesne`s rights to use and occupation or benefits and how and when double rent or dual value can be invoked. Use and occupancy rightsA right to use and occupy is possible if land is occupied without an explicit agreement setting out the agreement being a „gentlemen`s agreement” among its participants: Australia, Canada, the European Union, Japan, Korea, New Zealand, Norway, Switzerland, Turkey and the United States.