*EPF508 06/23/00
Obstacles to Objectives Persist as OECD Meeting Approaches
(Slovakia accession, corporate guidelines at issue) (550)
By Bruce Odessey
Washington File Staff Writer

Washington -- Obstacles remained to some key objectives for a meeting of ministers from 29 developed countries three days before the meeting starts, a State Department official says.

At issue are accession by Slovakia to the Organization for Economic Cooperation and Development (OECD) and adoption of revised OECD guidelines for multinational corporate behavior, James Heg, deputy director of an office in State's Europe bureau, said in a June 23 interview.

The OECD ministers' meeting is scheduled June 26-27 in Paris. Leading the U.S. delegation are U.S. Trade Representative Charlene Barshefsky and Council of Economic Advisers (CEA) Chairman Martin Baily.

Heg called "very unfortunate" the objection of one European country, which he declined to identify, to Slovakia's membership.

Later June 23, Reuters reported that France would block Slovakia accession to the OECD. At issue was France's insistence that Slovakia commit to requiring 50 percent of its radio and television content originate in Europe, the article said.

The 50-percent content requirement pertains internally to the European Union (EU), which Slovakia also wants to join -- but not to the OECD, where agreements bar such cultural trade barriers.

State Department briefer Philip Reeker told reporters June 22 that the United States strongly supports Slovakia's accession.

"We believe that it will help foster and consolidate the economic reform process in Slovakia, and we've gone on record in the OECD Council favoring issuance of an invitation to Slovakia to join the organization later this month," Reeker said. "The administration has assured the Slovak government of U.S. support for Slovakia's entry."

Another country, which Heg also declined to identify, has threatened to block the agreement on revising OECD multinational corporate behavior guidelines, Heg said.

The U.S. delegation supports the text of the revised guidelines -- called the OECD Guidelines for Multinational Enterprises -- as negotiated, he said, although major U.S. business groups have raised objections.

According to an OECD statement, "they establish non-legally binding principles covering a broad range of issues in business ethics including employment and industrial relations, environment, information disclosure, competition, financing, taxation, and science and technology."

Negotiated revisions to the 1976 original guidelines would add provisions about fighting bribery and protecting consumers. They would also expand businesses' responsibilities, including oversight of the practices of their suppliers and subcontractors.

Heg said trade issues would get lots of attention at the OECD meeting. Barhshefsky and other trade ministers are planning a lengthy session June 27 to try to narrow their differences over starting a new round of World Trade Organization (WTO) negotiations, he said. He viewed launch of a new round as more probable in 2001 than 2000.

Heg said the U.S. delegation will press 13 countries to ratify the OECD Bribery Convention, which entered into force in February 1999 for those that have ratified, including the United States.

Of the 29 OECD members and five non-member countries that signed the agreement, those that have still not ratified are: Argentina, Brazil, Chile, Denmark, France, Ireland, Italy, Luxembourg, Netherlands, New Zealand, Poland, Portugal and Turkey.

(The Washington File is a product of the Office of International Information Programs, U.S. Department of State. Web site: http://usinfo.state.gov)
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