Peru became the 41st adherent to the Organisation for Economic Cooperation and Development’s Declaration on International Investment and Multinational Enterprises. The acceptance has been made in recognition of Peru’s “remarkable progress in pursuing investment policy reforms to improve the country’s business climate and reduce poverty,” indicated OECD representatives Thursday.
“These initiatives have helped drive robust economic growth and vibrant foreign direct investment flows,” reads the OECD’s press release.
As an adherent to the Declaration, Peru is committed to treat foreign and domestic investors uniformly and to promote responsible business behaviour. Peru also benefits from similar assurances from the other adherents “to treat Peruvian investors abroad fairly and to encourage their multinational corporations operating in the country to contribute to economic, social and environmental progress.”
Before the Declaration can be fully implemented, Peru must first establish a National Contact Point within its Private Investment Promotion Agency, or ProInversión, to advocate the observance of the OECD Guidelines for Multinational Enterprises.
These guidelines are directed by governments to multinational corporations operating in or from adhering countries. They provide voluntary principles or standards of conduct concerning various issues such as industrial relations, human rights, environment, information disclosure, combating bribery and corruption, consumer interests, and taxation.
As an adherent, Peru will participate in OECD Investment Committee meetings relating to the Declaration, along with ten other emerging economies that are also adherents: Argentina, Brazil, Chile, Egypt, Estonia, Israel, Latvia, Lithuania, Romania and Slovenia.
The Committee promotes the liberalization of policies towards international capital movements, international direct investment and interprets and implements the 1976 Declaration and Decisions on International Investment and Multinational Enterprises.
