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The government must only back British business projects in developing countries which protect human rights and the environment, the Commons has heard.
Labour's Lisa Nandy proposed a bill under the ten minute rule motion calling for the urgent overhaul of the Export Credits Guarantee Department (ECGD), the government agency which offers support to UK companies doing business overseas.
Nandy said the department was guilty of not effectively scrutinising the business ventures it underwrites.
The ECGD was designed to help UK businesses abroad by offering insurance to private sector firms that couldn't find cover elsewhere.
The Wigan MP said many of the projects being supported by ECGD were "neither sustainable nor accountable", adding that they were often "incredibly damaging" to the local population.
The Export Credits Guarantee Department (Regulation and Reporting) Bill seeks to make the EDGD more accountable and ensure its activities are in line with wider government policy on promoting development and human rights.
Introducing the bill, Nandy said the "woefully under-scrutinised" department should do more to support smaller and more environmentally-friendly businesses wanting to trade overseas.
She told the Commons: "There is no legal requirement to publish a list of the projects it supports and it does not make public information about which outstanding debts relate to which projects.
"It has consistently refused requests to disclose a breakdown of these details - which are crucial to understanding sources of debt."
She added: "Stronger human rights and environmental due diligence by the ECGD and its clients and much better democratic scrutiny, accountability and transparency about its operations is a step in the right direction towards economic recovery, whilst respecting human rights and the environment."
When deals have gone wrong it is often the developing country which then has to pick up the debt, the MP warned.
The bill gained cross-party support and will have its second reading on Friday November 11, but is unlikely to make further progress due to a lack of parliamentary time.
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