91997E3377

WRITTEN QUESTION E-3377/97 by Richard Howitt (PSE) to the Commission (23 October 1997)

Subject: Code of Conduct for European companies operating in third countries

In December 196, the European Parliament adopted resolution A4-0400/96 ((OJ C 20, 20.1.1997, p. 161. )) on human rights throughout the world in 1995/1196 and the Union's human rights policy.

Paragraph 20 calls on the Commission to 'rapidly submit a proposal on a Code of Conduct for European companies operating in third countries which obliges them to respect human rights in all their forms (civil, social, economical, environmental), including mechanisms of control and sanction on the grounds of the existing OECD proposal'.

Can the Commission give a progress report on its work on a draft proposal for a Code of Conduct for European companies operating in third countries?

Answer given by Sir Leon Brittan on behalf of the Commission (1 December 1997)

The Organisation for economic cooperation and development (OECD) provides guidelines for multinational enterprises, which are a joint recommendation by participating governments to multinational enterprises operating within their jurisdiction. The objective of these guidelines is to help multinational enterprises ensure that their operations are in harmony with the national policies of the countries in which they operate. They include recommendations on, in particular, employment, industrial relations, and environmental protection. These guidelines are part of the OECD Declaration on international investment and multinational enterprises of 21 June 1976, as amended.

In the framework of the negotiations on a multilateral agreement on investment (MAI) it is envisaged that the guidelines will be annexed to the MAI. Although these guidelines will continue to be non-binding, their status will thus be enhanced. In addition, a revision of the guidelines is under consideration. Furthermore, it is envisaged that the MAI will be an agreement open to accession by non-OECD countries which will enlarge the number of multinational enterprises covered by the guidelines.

The Commission considers this to be an effective approach. Thus, as the Community as such is expected to become a contracting party to the MAI, there is no need to work on a separate European code of conduct for the time being.