HL Deb 19 July 1977 vol 386 cc292-3WA

asked Her Majesty's Government:

To what extent the following measures: Double taxation agreements; bilateral investment protection agreements; pre-investment study schemes; and investment insurance schemes provided by the ECGD are proving effective to promote investments in Commonwealth and non-Commonwealth developing countries, and in which of these are they operative.


The main factors influencing companies' decisions to invest overseas are the commercial viability of the project and the climate for investment in the country concerned. In so far as the measures mentioned contribute to these, they will facilitate investment in developing countries, but it is not possible to say what proportion of investments in these countries would not have been made had the measures not been in existence.

The Pre-Investment Studies Scheme and the Investment Insurance Scheme cover all developing countries. Details of countries covered by overseas investment insurance are given in the Annual Report to Parliament by the Secretary of State for Trade on the Overseas Investment and Export Guarantees Act 1972. Investment protection agreements have been concluded with Egypt, Singapore, Korea and Indonesia and negotiations are in progress with other countries. We have double taxation agreements with the following 44 developing countries and the network is being expanded:

Antigua *Lebanon
*Argentina Lesotho
Barbados Malawi
Belize Malaysia
Botswana Mauritius
*Brazil Montserrat
British Solomon Islands Netherlands Antilles
Brunei Nigeria
Burma Pakistan
Cyprus Portugal
Dominica St. Kitts
Falkland Islands St. Lucia
Fiji St. Vincent
Gambia Seychelles
Ghana Sierra Leone
Gilbert Islands Singapore
Greece *Spain
Grenada Swaziland
Indonesia Tanzania
*Iran Trinidad and Tobago
Israel Tuvalu
Jamaica Zambia
* Those countries with whom we have a limited air transport and/or shipping profits agreement only.

—Developing countries are those included in the OECD Development Committee list.