HC Deb 06 April 1998 vol 310 cc64-5W
Ms Walley

To ask the President of the Board of Trade what criteria are used to assess(a) market risk and (b) political risk when determining ECGD support for UK exporters; and if she will make a statement. [37008]

Mrs. Roche

When evaluating country or market risk, ECGD analyses factors which impinge on a country's capacity and willingness to meet its external debt commitments. Factors include the external debt burden of the economy and how it is likely to evolve over time as well as the country's ability to withstand internal and external economic shocks. A country's vulnerability to political risks such as civil wars, coups, etc. is also assessed when determining ECGD's support.

Ms Walley

To ask the President of the Board of Trade what assessment is made of a country's human rights record when allocating ECGD support for United Kingdom exporters; and if she will make a statement. [37009]

Mrs. Roche

ECGD's function is to underwrite payment risks associated with capital goods and project exports. Where an export licence is required, ECGD cover will become effective only on condition that the exporter has obtained the licence.

In his answer to my hon. Friend the Member for East Ham (Mr. Timms), 28 July 1997, Official Report, columns 26–29, my right hon. Friend the Foreign Secretary set out the criteria used in considering applications for licences to export goods entered in Part III of the Schedule 1 to the Export of Goods (Control) Order 1994, and licence applications for the export of dual-use goods where there are grounds for believing that the end-user of such goods will be the armed forces or the internal security forces of the recipient country.