THE OECD Secretary General, Mr Angel Gurria, has said that the emerging economies which do not currently subscribe to OECD rules on export credits could immediately join discussions to ensure fair global export competition for the future.

Most governments use official export credits to support exporters and build stronger bilateral economic relations. The OECD’s longstanding work on export credits aims to foster trade and open markets while ensuring a level playing field.

The OECD has historically been the key multilateral forum where international rules on officially supported export credits are agreed, implemented and monitored. This stems largely from the fact that the 34 OECD members have traditionally been both the principal providers of export credit financing as well as the principal beneficiaries of work to eliminate export subsidies and unfair trade practices.

The main focus of OECD work is the Arrangement on Officially Supported Export Credits, a “gentlemen’s agreement” under which governments negotiate, monitor and review the rules, conditions and changing market realities that impact the use of state financing in trade. While the Arrangement is neither legally binding nor attached to a dispute settlement mechanism, it has for the past 50 years served as a reflection of shared national objectives to facilitate fair, efficient and transparent competition among OECD members and other partners.

Most notable among the partners is Brazil, which has been working with the OECD on export credits for civil aviation since 2004, and has been a full participant in negotiations since 2007. Brazil signed the OECD’s landmark Aircraft Sector Understanding in early 2011, and its experience demonstrates how co-operation can be extended to other leading exporter nations, notably China and Russia.