(Ecofin Agency) - Federal councillor Johann Schneider-Ammann signed on 21st October an international agreement aimed at improving transparency and governance in the raw materials sector in developing countries.

Signed as part of the 30^th session of the Board meeting of the Extractive Industries Transparency Initiative (EITI) which is taking place in Bern from 20^th to 22^nd October, this agreement regulates the participation of Switzerland to the World Bank’s “Extractive Global Programmatic Support” program. One of its goals is to ensure the transparency of payments made to governments by raw materials companies.

The resources made available as part of this agreement are training, technical advice granted to ministries of Finance and Energy or support during contract negotiations with companies.

Launched in 2003, EITI is today applied in 48 countries. It is also supported by 90 extractive companies and 900 civil society organisations.

The raw materials sector has a great importance for the Swiss economy. Revenues derived from this activity make up 3.9% of the GDP of the country. And approximately 60% of metals and 35% of oil are negotiated by companies incorporated in Switzerland.

The importance of this sector however prevents Bern from doing a total cleanup among the raw materials trading groups, some of which have been nabbed by NGOs for infringing on Human or Environmental Rights.