The Organization for Economic Co-operation and Development (OECD) council approved on July 11, 2002, Israel's adherence to its Declaration on International Investment and Multinational Enterprises, the Israeli Ministry of Finance reported.
Israel's adherence to the declaration constitutes a fundamental phase in promoting the country’s full membership to the OECD and in leveling its economy as a developed market economy. The council's approval is expected to have a positive impact on the investment climate in Israel and to encourage foreign direct investments (FDI).
Israel's adherence was preceded by a conclusive report, written by the OECD secretariat, on Israel's economic and regulatory position regarding FDI. The report involved an examination visit of the OECD secretariat to Israel, which conducted thorough questioning and met various governmental and private sector representatives.
As part of the examination procedure an Israeli inter-ministerial delegation appeared for examination before the Committee on International Investment and Multinational Enterprises (CIME). The OECD report is due to be published in the near future.
The declaration, signed in 1976 by all 30 OECD Member States at that time, was later adopted by Argentina, Brazil, Chile, Estonia, Lithuania and Slovenia. The declaration's aim is to serve as a tool for enhancing the international investment sphere, while encouraging multinational enterprises to expand their activity.
The declaration stresses the positive manners in which multinational enterprises can contribute to the economical and social development, interwoven with an increased influx of cross border investments.
According to the declaration, the member states are obliged to provide suitable conditions for foreign enterprises, which are operating in their territories and to strengthen the cooperation among them in the field of foreign direct investments.
The declaration is based on four pillars, upon which the member states are bound to—refrain from discrimination of foreign companies operating in their territories, minimize the imposition of conflicting requirements on multinational enterprises and recognize the mutual interests of the other member states. The fourth pillar constitutes an ethical code for transparent and responsible behavior of the multinational enterprises.
The Guidelines aim is to ensure that the operations of these enterprises are in harmony with government policies, to strengthen the basis of mutual confidence between enterprises and the societies in which they operate, to help improve the foreign investment climate and to enhance the contribution to sustainable development made by multinational enterprises.
A National Contact Point (NCP) is to be established at the Israeli Ministry of Industry and Trade as a result of Israel's adherence to the declaration, whose role is to further the effectiveness of the guidelines. It will serve as a channel between the government and the business community, trade unions, non-governmental organizations and other bodies of vested interest.
The NCP will accept complaints submitted by Israeli entities against multinational enterprises operating within Israel, and on the other hand, will accept complaints regarding the activity of Israeli enterprises operating abroad. — (menareport.com)
© 2002 Mena Report (www.menareport.com)
