Now it has been delayed again, to the anger of the US, France, and other countries which feel Britain is trying to steal business through laxer standards. The Department of Trade and Industry made one important advance this month when it joined other OECD member states in agreeing on an action programme to deter bribery in government-supported export credit transactions. From now on the export credit and insurance agencies of OECD countries will demand signed statements from companies applying for coverage, stating they will not engage in bribery. If bribery is established, the agency will reject claims for indemnification and refer the case to the judicial authorities. This could act as a powerful deterrent, provided it is enforced.
Bribery is notoriously difficult to establish.
When a sales commission amounts to a quarter or half of a contract's value, the bells of suspicion must ring. Payments of this size cannot easily be explained, if auditing procedures require them to be clarified. Yet it remains blocked. If the problem is only that parliamentary time is limited, there is no reason why clauses outlawing foreign bribery could not be added to the bill the government is proposing on money laundering. The home secretary, the trade minister, and Clare Short all favour action.