It is intended as an authoritative reference for assessing financial services regimes abroad. It is difficult to obtain information on specific problems associated with bribery and corruption, particularly since its perpetrators go to great lengths to conceal their activities. Nevertheless, a consistent complaint from U.S. firms is that they have experienced situations that suggest corruption has played a role in the award of foreign contracts. This is particularly true in large infrastructure projects. The result can be a competitive advantage in favor of foreign firms in international transactions, particularly in the developing world.
Corruption takes many forms.
For example, in many countries, it is seen in government procurement and Customs practices. If left unchecked, bribery and corruption can negate market access gained through trade negotiations and could begin to undermine the foundations of the international trading system. The United States is doing its part in combating this problem. We have pressed the OECD to address bribes paid to foreign officials and we expect the OECD to recommend in the near future that member countries prohibit the tax deductibility of such bribes and make them subject to criminal penalties. Additionally, the United States has worked in the Organization of American States to obtain strong provisions in the Inter-American Convention Against Corruption.