A/HRC/38/48
on whether to extend financial support for export activities. The updated 2016 OECD
recommendation on common approaches to export credit includes a requirement for
export credit agencies to require applicants to undertake some form of human right
due diligence with respect to projects that pose severe human rights risks.
96.
While this is a positive step, to date, there are still only limited examples of
good practice even among the States which are members of the OECD Export Credit
Group. Furthermore, as noted in the present report, the Common Approaches still
have limitations in terms of the transactions to which they apply and the fact that they
leave questions over transactions that are not covered, as well as issues of access to
remedy and information disclosure. Furthermore, the OECD Export Credit Group
represents only a subset of the larger set of global export credit agencies.
97.
As the report indicates, there is room for reform in the export credit area as
part of State commitments under Guiding Principle 4. While States may commit to
factoring reports from national contact points and other types of determinations into
export credit agency decision-making, at present there is scant evidence that States
have refused to grant trade or export credit support to applicants because of an
adverse human rights determination.
98.
Finally, export and import controls and restrictions seem to be a promising
avenue for States to cause businesses that engage in cross-border trade to engage in
stronger human rights due diligence — either as buyers or sellers. In the event that
States take active measures to prevent goods such as those made with forced labour
from entering markets, this does provide a strong incentive for businesses to focus on
the Guiding Principles and human rights due diligence.
B.
Recommendations
99.
States should require businesses to demonstrate an awareness of and
commitment to the Guiding Principles as a prerequisite for receiving State support
and benefits relating to trade and export promotion. States should condition
participation in trade missions, eligibility for trade advocacy and generalized export
assistance on such commitments. Such forums and tools should be used to raise
awareness of business-related human rights risks in the relevant contexts, with a
particular emphasis on the risks faced by vulnerable groups and individuals. The
situation for human rights defenders and trade unions should serve as a concrete
benchmark.
100. States should look to see where they have required businesses to make existing
integrity and anti-corruption pledges in the context of trade promotion and expand
such commitments to include a commitment to respect for human rights and an
alignment of business activities with the Guiding Principles.
101. States should examine how and when they have withdrawn trade or other
government support from companies in the event that they are found to have engaged
in foreign bribery or corruption, and determine how a similar withdrawal of support
could be structured in the event that businesses have been found to have caused or
contributed or been directly linked to adverse human right impacts.
102. States should also examine how to use withdrawal of trade support more
actively, so as to create incentives for companies to respect human rights and engage
in human rights due diligence and legitimate remediation processes. To the extent that
companies know that there is a risk of losing export financing and other benefits, that
may promote greater compliance with the Guiding Principles.
103. In terms of export credit, States and their export credit agencies should ensure
that their practices are aligned with the Guiding Principles, not just the IFC
Performance Standards. For participants in the OECD Export Credit Group, States
are encouraged to look beyond the four corners of the OECD Common Approaches,
to see how better to align export credit activity with the Guiding Principles. That is
particularly true for transactions that fall outside the scope of the Common
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