The Guardian British multinationals could be frozen out of state contracts in Europe and the US unless Britain bans its firms from paying sweeteners, a leading anti-corruption watchdog warned yesterday. Britain's trading partners plan to play hardball if the next government fails to introduce legislation banning bribery of foreign officials. The OECD is losing patience with the government's failure to comply with an international agreement it signed up to more than two years ago. Britain is the only one of the 20 OECD countries that have ratified the agreement not to have changed its laws.
British companies can bribe with impunity.
Britain's trading partners fear UK firms could be bribing their way to a competitive advantage in foreign markets. Other OECD members have accused Britain of allowing its multinational firms to use corruption to win contracts. But any retaliation by foreign capitals would have to be within existing World Trade Organisation regulations, which could make it difficult to target British firms. They could say we are not prepared to give public procurement contracts to British firms. Last summer, the Home Office changed its stance and admitted existing laws based on the 1906 Prevention of Corruption Act were insufficient to prevent firms bribing officials on foreign soil.