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RECOMMENDATIONINTERNATIONAL INVESTMENT AND MULTINATIONAL ENTERPRISES
Recommendation of the Council on Member Country Measures concerning National Treatment of Foreign-Controlled Enterprises in OECD Member Countries and Based on Considerations of Public Order and Essential Security Interest
16 July 1986 - C(86)55/FINAL

THE COUNCIL,

HAVING REGARD to Article 5 b) of the Convention on the Organisation for Economic Co-operation and Development of 14 December 1960;

HAVING REGARD to the Declaration on International Investment and Multinational Enterprises of the Governments of OECD Member countries of 21 June 1976;

HAVING REGARD to the Report on the Second Review of the 1976 Declaration and Decisions on International Investment and Multinational Enterprises of 1984 [C/MIN(84)5(Final)];

HAVING REGARD to the Second Revised Decision of the Council on National Treatment [C(84)91] and in particular its paragraph 4;

On the proposal of the Committee on International Investment and Multinational Enterprises;

RECOMMENDS to Member countries:

a)   That, in view of the heightened transparency of National Treatment measures related to public order and essential security interests as a result of this examination, Member countries, in their notification to the Organisation of measures, provide as much detail as possible of the measures notified, including, in particular, measures concerning aids and subsidies;

b)   That, in the context of possible changes to or reviews of existing measures, or in considering the introduction of new measures, they practice restraint in their use of the limitation to accord National Treatment afforded by the provisions of the instrument concerning public order and essential security interests, aiming at circumscribing their measures related to public order and essential security interests to areas where such concerns are predominant;

c)   That they examine the possibility of amending measures based on public order and essential security interests in a manner which allows the reduction or avoidance of the direct or indirect impact of this discrimination against the activities of foreign-controlled enterprises outside the area where public order and essential security interests concerns are prevalent;

d)   That, in areas of preferential treatment of locally-owned enterprises such as, in particular, government procurement practices, they consider the possibility of narrowing the breadth of such preferential treatment to expand the areas in which foreign-controlled enterprises have non-discriminatory access to the markets concerned;

e)   That, in areas where restrictions are placed on the operations of foreign-controlled enterprises for reasons of public order and essential security interests, and in particular in areas where such enterprises are excluded in their entirety, they study the possibility of alternative regulations which would allow them to fulfill their objectives concerning public order and essential security interests and also permit foreign-controlled enterprises to operate in the countries concerned.

Non-Member Adherents [*]   

Argentina

  • Adherence date: 22 April 1997

Brazil

  • Adherence date: 14 November 1997

Chile

  • Adherence date: 3 October 1997

Colombia

  • Adherence date: 8 December 2011

Costa Rica

  • Adherence date: 30 September 2013

Egypt

  • Adherence date: 11 July 2007

Estonia

  • Adherence date: 20 September 2001

Hungary

  • Adherence date: 11 April 1994

Israel

  • Adherence date: 19 September 2002

Jordan

  • Adherence date: 24 November 2013

Kazakhstan

  • Adherence date: 20 June 2017

Latvia

  • Adherence date: 19 December 2003

Lithuania

  • Adherence date: 20 September 2001

Morocco

  • Adherence date: 23 November 2009

Peru

  • Adherence date: 22 July 2008

Romania

  • Adherence date: 12 April 2005

Slovenia

  • Adherence date: 22 January 2002

Tunisia

  • Adherence date: 23 May 2012

Ukraine

  • Adherence date: 15 March 2017
Relevant body:
Committee on International Investment and Multinational Enterprises now called Investment Committee

[*] Adherence date is the exchange of letter date (most recent date if two dates available). Chile became Member of the Organisation on 7 May 2010. Estonia became Member of the Organisation on 9 December 2010. Hungary became Member of the Organisation on 7 May 1996. Israel became Member of the Organisation on 7 September 2010. Latvia became Member of the Organisation on 1 July 2016. Slovenia became Member of the Organisation on 21 July 2010.
 
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