We co-operate with other export credit agencies around the world. This occurs through the exchange of information and experiences, as well as the coinsuring or reinsuring of risk. Strong international connections help to deepen our expertise, benchmark policies and processes, and to identify risk-sharing opportunities – all with the objective of better supporting New Zealand exporters.
Berne Union Member
The Berne Union is an international association of over 80 export credit, private trade credit and political risk insurers. Around 13% of the world's exports have been annually insured by the Berne Union members over recent years.
The Berne Union's Prague Club Committee consists of newer, smaller export credit and political risk insurers. It is a very diverse membership with the 38 members representing countries from Central and Eastern Europe, the Middle East and Africa, Central and Southeast Asia.
Between 2015-2017 NZEC chaired the Prague Club Committee and served on Berne Unions's Management Committee.
Bilateral Cooperation and Reinsurance Arrangements
Cooperation as well as Reinsurance arrangements between export credit agencies are increasingly common, with the aims of sharing information as well as reinsuring risks.
We have a reinsurance arrangement with EFA (Export Finance Australia) to facilitate exports from Australia and New Zealand. If an Australian and New Zealand company are delivering a project in a third country, either jointly or under a lead contractor and sub-contractor arrangement, then the buyer and country risks can be underwritten either jointly or via reinsurance (where the export credit agency of the lead contractor reinsures a portion of the risk with the sub-contractor’s export credit agency).
We also have a reinsurance arrangement with EKF (Denmark) and the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC). The ICIEC arrangement provides us with an opportunity to reinsure New Zealand exports sold to Government and public buyers from ICIEC’s Islamic country members.
A Services Arrangement is also in place with Sweden’s EKN, under which EKN provides their expertise in support of our operations. Examples include the provision of risk assessments by EKN’s specialist country risk team.
We also have a general cooperation agreement with Belarus’ Eximgarant.
Indemnity Arrangements with Private Sector
We have master indemnity arrangements with Liberty Mutual Insurance Company, Liberty International Underwriters Canada, and AIG Australia Limited to enable the provision of surety bonds on behalf of New Zealand exporters in North America and the Pacific.
As a member of the OECD, New Zealand cooperates with other OECD countries on guidelines to support proper and sustainable practices in the delivery of export credits.
One example is the OECD Arrangement on Officially Supported Export Credits, which regulates payment conditions, interest rates and premiums for state export credit support. A primary purpose of the Agreement is to provide a framework for the orderly use of export credits and to foster a level playing field for exporters and financiers across difference countries.
The OECD countries also co-operate on guidelines called the Recommendation on Common Approaches for Officially Supported Export Credits and Environmental and Social Due Diligence. The OECD’s working group for export credits and guarantees regularly follows up and develops the guidelines and their application. Read more about our environmental policy.
Another area of co-operation is corruption where OECD members have agreed on a common policy and procedures in the form of OECD Recommendation on Bribery and Officially Supported Export Credits. Read more about our Anti-Bribery Policy.
We also follow sustainable lending principles that OECD countries have agreed in regards to export credits offered to public buyers in countries that have restrictions on commercial borrowing under programs with the World Bank and IMF.
We work with our Ministry of Foreign Affairs and Trade to ensure that we operate in line with our obligations as a member of the World Trade Organisation (WTO). This includes adhering to an agreement on agricultural products exports which states a maximum repayment period of 18 months and the application of risk-based premiums to cover the long-term operating costs and losses of the export credit programmes.