Promoting Responsible Business Conduct through Trade and Investment in the Middle East, North Africa and Türkiye

2. Trade and investment policies and agreements as levers to encourage responsible business conduct

Abstract

Governments can promote RBC through a range of policy areas that contribute to shape businesses’ practices, including trade and investment. Trade and investment policies and agreements can not only strengthen legal, regulatory and policy frameworks that enable RBC, but also directly encourage responsible practices among businesses. Governments across the world are increasingly integrating RBC considerations in their overarching trade and investment promotion and facilitation policies, as well as in the support services provided to exporters and investors, using them as tools to provide information, raise awareness, and create incentives for the adoption of responsible business practices. Trade and investment agreements are also becoming important components of an enabling environment for RBC. In addition to contributing to reinforce relevant legal, regulatory, and policy frameworks, they can support international collaboration on RBC, while also helping to promote RBC directly with businesses.

2.1. Promoting responsible business conduct through trade and investment promotion and facilitation policies

Trade and investment promotion and facilitation is a central part of trade and investment policies that governments can use to encourage RBC. The integration of RBC considerations in these policies can contribute to incentivise responsible business practices, both from exporting companies and investors.

2.1.1. Trade promotion policies

As part of their trade promotion policies, governments offer a wide array of support and services to exporting companies. These different types of support and services constitute avenues to promote access to information on RBC and incentivise exporters to observe RBC principles and standards (OECD, 2018, pp. 55-56[9]). This is the case of the financial support provided to national exporters competing in international markets through export credit agencies (ECAs). This is also true of the non-financial support to trade and exports. Trade missions, which allow representatives of exporting companies to travel overseas with government officials to promote their businesses, but also capacity building activities, or access to relevant information and networks granted through embassies to enhance export opportunities, are all means that can be used to promote RBC (OECD, 2018, pp. 55-56[9]).

The OECD Recommendation on the Role of Government in Promoting RBC contains several guiding principles regarding the use of trade promotion policies to encourage RBC. It notably recommends that governments support the implementation of RBC standards by promoting awareness of RBC among parties involved in applications for officially supported export credits. This is in line with the OECD Recommendation of the Council on Common Approaches for Officially Supported Export Credits and Environmental and Social Due Diligence (the OECD “Common Approaches”), which encourages governments to promote the MNE Guidelines via their ECAs and consider the outcomes of NCP cases when undertaking project reviews (see Annex A) (OECD, n.d.[10]). In a similar vein, the OECD Recommendation on the Role of Government in Promoting RBC also recommends that governments, when reviewing eligibility for government support and services (such as trade advocacy and economic diplomacy), take into account the good faith engagement of companies in the context of NCP specific instances [OECD/LEGAL/0486, para. III(5)].

Over recent years, several adherent countries to the Declaration on International Investment and MNEs and the MNE Guidelines have sought to enhance policy coherence for RBC and use trade promotion as a lever to promote RBC. In 2025, 77% of NCPs (compared to 56% in 2024) reported to the OECD Secretariat promoting the MNE Guidelines with trade and investment promotion agencies.1 Similarly, 50% reported having informed officials responsible for trade missions of their relevant statements and reports.2 Going beyond information-sharing, some adherent countries have taken more specific measures to encourage the observance of RBC principles and standards among exporters. This includes giving a specific mandate to their trade promotion agencies (TPAs) to promote responsible business practices in the export offer or linking the access to their services to a commitment to observe RBC principles and standards by exporters, as done by some trade partners of the MENA+T Programme Countries (see Box 2.1).

Box 2.1. Examples of government measures to promote responsible business conduct through trade promotion

Spain’s capacity-building initiatives

Spain’s trade promotion agency – ICEX – organises, together with UN Global Compact Spain and the Spanish Official Credit Institute Foundation (Fundación ICO), a year-long training programme to support small and medium enterprises involved in the supply chains of large companies integrate sustainability in their operations. The programme consists of workshops and resources on the responsible management of supply chains and covers several areas of the MNE Guidelines (human and labour rights, the environment, and anti-corruption). Since its launch in 2023, more than 5 700 companies from 50 countries have participated in the programme, which was in its fourth edition at the time of writing. In addition, ICEX provides information to exporters on evolving legal requirements related to RBC. For example, in 2023, it held a webinar cycle on human rights and environmental due diligence and how to approach its implementation.

The Netherland’s requirements for trade support

The Netherlands requires that exporters seeking financial or non-financial support from the government demonstrate their observance of the MNE Guidelines. The website of the one‑stop-shop for local or foreign businesses looking to do business with the Netherlands sets the eligibility criteria and specifies that exporting companies can show that they observe the MNE Guidelines by:

• obtaining a certification, such as a quality label

• providing a performance comparison demonstrating the company’s efforts with regards to RBC in its region or sector

• issuing a substantiated statement in which the company outlines its RBC commitments

• presenting a sustainability report detailing the company’s RBC activities

• submitting documentation on the company’s RBC activities.

Sources: UN Global Compact Spain (n.d.[11]), “Training program: sustainable suppliers”, https://www.pactomundial.org/sustainablesuppliers/formacion-proveedores-sostenibles/en; UN Global Compact Spain (2024[12]), Strengthening Sustainability in the Supply Chain: Results of the second edition of the “Training Programme: Sustainable Suppliers” 2023‑2024; Government of Spain (2024[13]), ICEX – Memoria de Sostenibilidad 2023, https://www.icex.es/es/sobre-nosotros/administracion-abierta/memorias; Government of the Netherlands (2025[14]), Responsible business conduct (RBC), https://business.gov.nl/regulation/responsible-business-conduct/.

2.1.2. Investment promotion and facilitation policies

Governments also grant support to investors through investment promotion and facilitation policies, which respectively aim to market a country as an investment destination and make it easier for investors to establish, operate, or expand their investments (OECD, 2018, p. 3[15]). As with exporters, the numerous services offered to investors can be used as conduits to encourage the adoption of responsible business practices (OECD, 2015, p. 18[16]). The inclusion of RBC considerations in the different image‑building and investment generation activities carried out for investment promotion purposes can help build a country’s positive image and attract responsible investors towards sustainable investment opportunities (OECD, 2015, p. 39[16]; 2018, p. 3[15]). Similarly for investment facilitation, all investor servicing and aftercare activities aimed at reducing the number of obstacles faced by investors can be used to promote RBC (OECD, 2015, p. 39[16]; 2018, p. 3[15]; 2022, p. 33[17]).

The PFI recognises that RBC is central to a good investment climate and should play a part in investment policies to ensure that investors act responsibly (OECD, 2015, pp. 18, 75[16]). It further indicates that “an investment climate that does not include respect for certain rules of responsible business conduct […] risks being shunned by international investors and by foreign customers” (OECD, 2015, p. 18[16]). The OECD Recommendation on the Role of Government in Promoting RBC also advises that governments encourage RBC through investment policies, with the expectation that businesses under the scope of these policies implement RBC standards [OECD/LEGAL/0486, para. III(2)]. Moreover, it recommends in broader terms applicable to investment promotion and facilitation, that governments support the effective implementation of RBC standards through the provision of reliable information, tools, and incentives, including, where feasible, aligning economic benefits and incentives for businesses with the implementation of RBC standards [OECD/LEGAL/0486, para. III(1)].

In recent years, various countries have resorted to their investment promotion and facilitation policies to encourage the adoption of responsible business practices (see Box 2.2). In this context, a number of investment promotion agencies (IPAs) have been given the mandate to attract, facilitate, and retain sustainable investments and, in particular, to promote RBC. More generally, some IPAs have integrated considerations relevant for the promotion of RBC in their investment promotion and facilitation activities and their support services for investors (see Box 2.2) (OECD, 2019, pp. 41-42[18]). Other IPAs have reported taking action when assisted investors do not observe RBC principles and standards (Volpe Martincus and Sztajerowska, 2019, pp. 50-51; 108-109[19]). In adherent countries, increased information sharing and co‑operation between officials in charge of investment matters and NCPs have supported these actions. In 2025, 50% of NCPs (26 out of 52) reported to the OECD Secretariat having shared statements, data and other insights with officials responsible for trade and investment support.3

In recent years, various countries have resorted to their investment promotion and facilitation policies to encourage the adoption of responsible business practices (see Box 2.2). In this context, a number of investment promotion agencies (IPAs) have been given the mandate to attract, facilitate, and retain sustainable investments and, in particular, to promote RBC. More generally, some IPAs have integrated considerations relevant for the promotion of RBC in their investment promotion and facilitation activities and their support services for investors (see Box 2.2) (OECD, 2019, pp. 41-42[18]). Other IPAs have reported taking action when assisted investors do not observe RBC principles and standards (Volpe Martincus and Sztajerowska, 2019, pp. 50-51; 108-109[19]). In adherent countries, increased information sharing and co‑operation between officials in charge of investment matters and NCPs have supported these actions. In 2025, 50% of NCPs (26 out of 52) reported to the OECD Secretariat having shared statements, data and other insights with officials responsible for trade and investment support.4

Box 2.2. Examples of government measures to promote responsible business conduct through investment promotion and facilitation

Asia-Pacific Economic Co‑operation’s Upgraded Investment Facilitation Action Plan: Principles and strategies

Asia-Pacific Economic Co‑operation (APEC)’s Upgraded Investment Facilitation Action Plan (IFAP) underlines that APEC economies have implemented various investment facilitation measures aimed at maximising the developmental impact of FDI, including by promoting RBC among investors. The promotion of “sustainability and responsible business conduct in the investment environment” is one of the key principles and strategies enshrined in the IFAP. According to these principles and strategies, APEC economies should “encourage investors to adhere to international principles on responsible business conduct (RBC) and inclusive and responsible business and investment (IRBI), including by undertaking risk-based due diligence as an integral part of risk management systems in their supply chains”. They specify that this “includes identifying actual and potential adverse impacts on their operations, products and services; and developing strategies to prevent, mitigate, and address such adverse impacts.”

The “Suppliers Database with Sustainability Dimensions” of the Council for the Development of Cambodia

The Council for the Development of Cambodia is a government entity responsible, among others, for investment promotion and facilitation with the broader goal of modernising Cambodia’s economy, increasing productivity, and strengthening integration into global value chains. The services it provides through its investment promotion arm – the Cambodian Investment Board – include a “Suppliers Database with Sustainability Dimensions”. The Database aims to attract and facilitate investments from responsible investors by simplifying the identification of domestic suppliers with responsible business practices. In addition to general information on potential local suppliers, it provides specific information on suppliers’ performance across six areas relevant for RBC (quality standards and certifications, gender inclusion, responsible supply chains, environmental sustainability, employee capacity-building, and employee care).

Sources: APEC (2025[20]), APEC Investment Facilitation Action Plan: Principles and Strategies, https://www.apec.org/docs/default-source/groups/ieg/2025/25_cti2_027.pdf?sfvrsn=30da62f8_1; Government of Cambodia (n.d.[21]), “The Council for the Development of Cambodia (CDC)”, https://cdc.gov.kh/; Government of Cambodia (n.d.[22]), “The Suppliers Database with Sustainability Dimensions (SD2)”, https://sd2.cdc.gov.kh/.

2.2. Promoting responsible business conduct through trade and investment agreements

Trade and investment agreements are another important component of an enabling environment for RBC. As recommended by the OECD Recommendation on the Role of Government in Promoting RBC, they can be used by governments to encourage businesses to adopt responsible business practices [OECD/LEGAL/0486, para. III(2)]. This can be done through the inclusion of RBC considerations in diverse kinds of provisions (OECD, 2024, p. 13[8]).

The first kind are provisions that deal, directly or indirectly, with areas covered by the MNE Guidelines, such as the respect for human rights, the promotion of labour standards, the protection of the environment, or the fight against corruption, and which reflect the signatories’ commitments in relation to these areas (hereinafter called sustainability provisions). The second kind are clauses through which the signatories commit to encourage businesses to observe RBC principles and standards (hereinafter called RBC clauses). These provisions and clauses can have various effects that contribute to enabling and promoting RBC.5

Sustainability provisions have the potential to support and reinforce governments’ legal and policy frameworks in areas covered by the MNE Guidelines by buttressing the adoption, implementation and enforcement of domestic laws, regulations and policies in the human rights, labour, environmental or anti-corruption fields (Gaukrodger, 2021, pp. 10, 84; 86-94[23]) (OECD, 2022, pp. 107-110; 171-173[17]). In this way, they contribute to reinforcing the legal and policy frameworks in these areas, which underpin RBC. This is notably the case of provisions through which the signatories commit to incorporating in their legal frameworks internationally recognised principles and standards in these different areas or to implement and enforce related laws and regulations. This is also the case of the provisions that seek to preserve the signatories’ right to regulate in areas covered by the MNE Guidelines by allowing them to adopt new laws, regulations and policies aimed at pursuing public interest objectives in these areas without legal risks. Sustainability provisions are also those that prohibit signatories from lowering or weakening their laws and regulations in these same areas or through which they undertake to co‑operate and exchange best practices on these topics (Gaukrodger, 2021, pp. 10, 84; 86-94[23]) (OECD, 2022, pp. 107-110; 171-173[17]).

Sustainability provisions can also contribute to facilitate access to remedy for victims of business-related adverse impacts. By promoting regulatory co‑operation and/or intergovernmental consultations on matters arising in areas covered by the MNE Guidelines, they can lead to the resolution of RBC issues and contribute to remedy such impacts. Likewise, the possibility that governments may have under some investment agreements to bring actions against investors, when the conditions to bring such counterclaims under the applicable rules are met, constitute another avenue through which remedies can be obtained in case of harm linked to investors’ operations.

As to RBC clauses, they can directly promote the observance of RBC principles and standards by “speaking to businesses” (Gaukrodger, 2021, pp. 84; 102-108[23]). These clauses in general underline the importance of RBC and sometimes highlight the RBC instruments that should be observed by companies, for instance through express references to the MNE Guidelines, and in some cases even the need to conduct due diligence. By communicating and clarifying the governments’ expectations on RBC, they encourage the adoption of responsible business practices.

In recent years, countries have increasingly sought to integrate sustainability provisions and RBC clauses in their trade and investment agreements. Canada, for instance, as well as the EU, tend to systematically include them in their new agreements (London School of Economics and Political Science, 2022[24]; Government of Canada, 2022[25]; European Commission, n.d.[26]; European Commission, 2022[27]). A concrete example of an agreement with sustainability provisions is the 2018 Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), which includes full chapters dedicated to various areas covered by the MNE Guidelines. The Bahrain-Hungary BIT is an investment agreement that incorporates an RBC clause through which the signatories commit to promote the uptake of RBC by businesses (see Box 2.3).

Box 2.3. Examples of sustainability provisions and RBC clauses in trade and investment agreements

Sustainability provisions in the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP)

The CPTPP, signed in 2018, incorporates a number of sustainability provisions in various areas covered by the MNE Guidelines. It contains entire chapters dedicated to labour, the environment, as well as transparency and anti-corruption, each with detailed sustainability provisions. In the labour chapter, for instance, the signatories reaffirm their commitment to implement the ILO Declaration on Fundamental Principles and Rights at Work, and to maintain laws on minimum wages, working hours, and occupational health and safety. In addition, the chapter prohibits weakening labour protections to attract trade or investment and requires effective enforcement of labour laws. It also integrates procedural safeguards in labour matters and creates a mechanism allowing citizens to file public submissions on matters related to the labour chapter that governments must review and address. Similarly, the environment chapter includes sustainability provisions in which the signatories affirm their commitment to implement the multilateral environmental agreements they have ratified and to maintain high levels of environmental protection. Other provisions prohibit weakening or lowering environmental standards to attract trade or investment and reaffirm the signatories’ right to regulate for environmental protection purposes. This chapter also includes procedural guarantees for environmental matters and allows citizens to file public submissions in case of concerns on the implementation or enforcement of environmental laws. In the transparency and anti-corruption chapter, the signatories commit to adopt, maintain and enforce measures to combat corruption. They also undertake to promote integrity among public officials, whistle‑blowers’ protection, and the participation of the private sector and civil society in the fight against corruption.

The RBC clause in the BIT between the Kingdom of Bahrain and Hungary

The BIT between Bahrain and Hungary, which entered into force in July 2025, contains a detailed RBC clause. In this clause, the signatories first “recognise the important contribution of corporate social responsibility [CSR] practices to strengthening the positive role of investment in sustainable growth”. They then commit to promote the uptake of RBC by businesses in line with internationally recognised CSR principles and guidelines. The signatories also undertake to exchange information and co‑operate on promoting responsible business practices.

Sources: (2018[28]), Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), https://www.international.gc.ca/trade-commerce/trade-agreements-accords-commerciaux/agr-acc/cptpp-ptpgp/index.aspx?lang=eng; (2025[29]), Bahrain-Hungary BIT, Article 9 (Corporate Social Responsibility), available at: https://www.iareporter.com/articles/106859/.

The inclusion of sustainability provisions and RBC clauses in trade and investment agreements is also happening at the multilateral level. The Investment Facilitation for Development Agreement (IFD Agreement) of the World Trade Organisation (WTO), which has not yet been incorporated in the WTO framework despite support for doing so by 165 WTO members, includes a full section on sustainable investment (WTO, 2024[30]; WTO, 2026[31]). In addition to a provision dealing with measures against corruption, this section contains an RBC clause that seeks to promote the observance of RBC principles and standards by investors (see Box 2.4).

Box 2.4. The inclusion of a responsible business conduct clause in the WTO’s Investment Facilitation for Development Agreement

The Investment Facilitation for Development (IFD) Agreement was negotiated at the WTO between 2020 and 2023 with the aim of strengthening the investment climate and promoting international co‑operation to facilitate foreign direct investment for sustainable development. The goal of the IFD Agreement is thus to help WTO members attract not only more, but also higher quality, investment that contributes to sustainable development.

In the context of these negotiations, several countries advocated for the integration of RBC considerations in the text of the IFD Agreement. This ultimately resulted in the insertion of an RBC clause in section VI on sustainable investment, together with a provision dealing with measures against corruption. Through Article 37 of the IFD, the parties commit to encourage investors to observe internationally recognised RBC principles and standards, including to undertake meaningful engagement and dialogue with indigenous peoples and local communities. They also recognise the importance for investors to implement due diligence for RBC to identify and address adverse impacts in their operations, supply chains and other business relationships. In addition, they commit to exchanging best practices on RBC, notably on ways to facilitate the uptake by companies of responsible business practices and reporting.

The IFD Agreement is accompanied by an Investment Facilitation Self-Assessment Guide prepared with the support of international organisations, including the OECD. The Guide aims at helping WTO members and, particularly, developing and least developed countries, to self-assess their needs and priorities in relation to each provision of the Agreement, including the RBC clause, in order to facilitate their implementation. With this Guide, WTO members can identify implementation gaps in relation to RBC and determine their technical assistance and capacity-building needs.

Sources: WTO (2025[32]), Investment Facilitation for Development in the WTO, https://www.wto.org/english/tratop_e/invfac_public_e/2025_05_14_ifd_factsheet_english.pdf; (2024[30]), Joint Ministerial Declaration on the Investment Facilitation for Development Agreement, https://docs.wto.org/dol2fe/Pages/SS/directdoc.aspx?filename=q:/WT/MIN24/17.pdf&Open=True; (2026[31]), Members participating in IFD Agreement issue joint ministerial declaration at end of MC14, https://www.wto.org/english/news_e/news26_e/infac_30mar26_353_e.htm.

Notes

← 1.  Compiled by the OECD Secretariat based on the answers by 52 NCPs to the 2024 NCP Annual Questionnaire.

← 2.  Compiled by the OECD Secretariat based on the answers by 52 NCPs to the 2024 NCP Annual Questionnaire.

← 3.  Compiled by the OECD Secretariat based on the answers by 52 NCPs to the 2025 NCP Annual Questionnaire.

← 4.  Compiled by the OECD Secretariat based on the answers by 52 NCPs to the 2025 NCP Annual Questionnaire.

← 5.  It should be noted that, as far as investment agreements are concerned, other kinds of provisions can also potentially have a bearing on RBC. This is, in particular, the case of provisions requiring that investments be made in accordance with domestic law in order to benefit from the coverage of the agreement. General protections, such as provisions on granting “fair and equitable treatment” to covered foreign investors, can affect policy space to regulate business activities. However, as these provisions do not expressly refer to sustainability issues, such as respect for human rights, the promotion of labour standards, the protection of the environment, or the fight against corruption, or contain an express mention of RBC or CSR, they are not included in the present analysis. For a discussion of these provisions, see Gaukrodger, D. (Gaukrodger, 2021[23]), “Business responsibilities and investment treaties”; Gaukrodger, D. (2017[149]), “Addressing the balance of interests in investment treaties: The limitation of fair and equitable treatment provisions to the minimum standard of treatment under customary international law”. See also Pohl, J. (2018[148]), “Societal benefits and costs of International Investment Agreements: A critical review of aspects and available empirical evidence”; Dolzer, R. (2005[140]), “The Impact of International Investment Treaties on Domestic Administrative Law”.