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Principles for Trade in Support of Development

InterAction, the US’s largest alliance of nongovernmental groups conducting overseas relief and
development work believes that generating broad-based economic growth and prosperity is an essential
element in reducing poverty and promoting development. InterAction and its 160 member
organizations recognize that international trade and investment can be an important motor for
economic growth. To advance an effective development agenda, InterAction believes the following
principles should guide international trade and investment:

Be development oriented: In order for trade agreements to effectively promote economic growth, it
is essential that the benefits of trade be made available to all, particularly those who often have been
marginalized economically – such as women, indigenous populations and the poor. In addition, trade
agreements should respect a nation's development priorities in a way that nurtures the ability of
institutions and individuals to channel economic growth so that it helps reduce poverty and is
environmentally sustainable. Trade can be a powerful tool to combat poverty and reinforce effective,
accountable development, but, in order to do so, trade policies should address development goals and
include programs to build institutional and individual capacity.

Ensure coherence with poverty reduction efforts: Trade alone is not enough to reduce poverty and
its associated ills, such as poor health care, inadequate education, and gender inequality. In addition to
sound trade policies, sustainable economic development requires: accountable domestic institutions;
health, education, environmental, etc. programs; sufficient resources and appropriate national and
international policies in the areas of development assistance, debt relief, and private investment. These
programs and policies and trade policies and agreements should be mutually supportive.

Respect human rights: Trade agreements should enhance and not undermine the set of human rights
guaranteed under existing international accords. They should help poor and marginalized people --
including those in the rural agricultural sector, women, and indigenous groups -- meet their basic needs
and secure and maintain access to essential services.

Encourage participation and transparency: Although many trade negotiations happen behind
closed doors, governments should seek to ensure that their citizens’ views are taken into account in
policy formulation. Governments should develop trade positions through broad-based citizen
participation in the formulation, implementation, and evaluation of international trade agreements.
These agreements should be negotiated in a transparent and democratic way, with every effort being
made to build a consensus through an open, inclusive process involving civil society. These same
principles of participation and transparency should apply to international trade-related bodies.

Adhere to international principles: Existing documents including the UN Millennium Declaration,

Doha Ministerial Declaration, and the Monterrey Consensus -- all signed by the United States --
provide the guiding principles for ensuring that trade work best promote economic growth and
development. Implementation of these principles, however, has been inadequate and uneven.
Governments should ensure that their trade policies and practices enshrine and implement these
principles.

June 14, 2006