The Declaration on International Investment and Multinational Enterprises

Organisation for Economic Co-operation and Development

This Declaration was adopted by the Governments of OECD Member countries on 21 June 1976. It was reviewed in 1979, 1984 and 1991. Section III on Conflicting Requirements was added following the 1991 Review.

The Declaration contains two Annexes, one representing the OECD Guidelines for Multinational Enterprises, the other dealing with general considerations and practical approaches concerning conflicting requirements imposed on multinational enterprises.

The implementation of each of the items I-IV of the Declaration has been dealt with in procedural Decisions by the OECD Council.

On matters falling within its competence, the European Economic Community is associated with the section on National Treatment.

The Governments of OECD Member countries

CONSIDERING:

• That international investment has assumed increased importance in the world economy and has considerably contributed to the development of their countries;
• That multinational enterprises play an important role in this investment process;
• That co-operation by Member countries can improve the foreign investment climate, encourage the positive contribution which multinational enterprises can make to economic and social progress, and minimise and resolve difficulties which may arise from their various operations;
• That, while continuing endeavours within the OECD may lead to further international arrangements and agreements in this field, it seems appropriate at this stage to intensify their co-operation and consultation on issue relating to international investment and multinational enterprises through inter-related instruments each of which deals with a different aspect of the matter and together constitute a framework within which the OECD will consider these issues;

DECLARE:

That they jointly recommend to multinational enterprises operating in their territories the observance of the Guidelines as set forth in Annex 1 hereto having regard to the considerations and understandings which introduce the Guidelines and are an integral part of them;

That Member countries should, consistent with their needs to maintain public order, to protect their essential security interests and to fulfil commitments relating to international peace and security, accord to enterprises operating in their territories and owned or controlled directly or indirectly by nationals of another Member country (hereinafter referred to as "Foreign-Controlled Enterprises") treatment under their laws, regulations and administrative practices, consistent with international law and no less favourable than that accorded in like situations to domestic enterprises (hereinafter referred to as "National Treatment");

That Member countries will consider applying "National Treatment" in respect of countries other than Member countries;

That Member countries will endeavour to ensure that their territorial subdivisions apply "National Treatment";

That this Declaration does not deal with the right of Member countries to regulate the entry of foreign investment or the conditions of establishment of foreign enterprises;

That they will co-operate with a view to avoiding or minimising the imposition of conflicting requirements on multinational enterprises and that they will take into account the general considerations and practical approaches as set forth in Annex 2 hereto.

That they recognise the need to strengthen their co-operation in the field of international direct investment;

That they thus recognise the need to give due weight to the interests of Member countries affected by specific laws, regulations and administrative practices in this field (hereinafter called "measures") providing official incentives and disincentives to international direct investment;

That Member countries will endeavour to make such measures as transparent as possible, so that their importance and purpose can be ascertained and that information on them can be readily available;

That they are prepared to consult one another on the above matters in conformity with the Decisions of the Council on the Guidelines for Multinational Enterprises, on National Treatment and on International Investment Incentives and Disincentives;

That they will review the above matters within three years with a view to improving the effectiveness of international economic co-operation among Member countries on issues relating to international investment and multinational enterprises.