IGD is a strong advocate for opening the global marketplace to poor countries and poor people. Expanding trade allows developing countries access to capital and markets and can catalyze greater investment in those countries.

IGD believes that the multilateral trading system is the best hope for trade rules that serve economic development and poverty reduction worldwide and we have long supported a successful conclusion to the Doha Round trade negotiations. We will continue to urge the U.S. government to use all the tools at its disposal to bring the Doha Round to completion. However, in the absence of a global deal, the United States should unilaterally embrace a number of reforms to improve the prospects for trade-driven growth in developing countries and improve the climate for the future success of the Doha Round.

Trade preferences working group proposals
Two sets of recommendations, each endorsed by a wide range of organizations including business associations, development organizations, think tanks and companies, including IGD. Each proposal’s endorsers are listed in its text.

White paper on trade and development in Africa

March 1, 2010
Sub-Saharan Africa faces unique challenges in harnessing the power of trade for development and poverty reduction. The organizations endorsing this paper believe that while expansive and reliable market access is necessary to development, it is not always sufficient. Complementary investments to ease existing barriers to production and trade – locally, nationally, regionally and internationally – are critical. This proposal aims to describe the need for these supply-side investments and the ways in which the USG could better integrate its aid programs and trade policy to more effectively promote development.

Trade preference improvement proposal

December 1, 2009
This proposal for improving U.S. trade preference programs outlines ways to ensure that our preference programs effectively promote development. Programs must be reliable, simple to use, sensitive to beneficiaries’ vulnerabilities and linked to targeted policies and programs to build capacity.

Reforms that IGD supports:

Expanding access to the U.S. market

Even though the U.S. market is one of the most open in the world, barriers remain in sectors where poor countries could be most competitive. Developing countries are in desperate need of opportunities to help them grow and reduce poverty. IGD supports granting these countries duty-free, quota-free access to the U.S. market.

Improving trade preference programs

The trade preferences currently offered to developing countries are through a mish-mash of programs, none of which is guaranteed to exist long-term. Merging them into a single, permanent program with a streamlined set of rules would increase the kind of market access that stimulates investment and production in developing countries.

Building capacity in poor countries

For many developing countries, gaining market access is only half the battle. Many poor countries need “aid-for-trade” assistance to help them loosen constraints and take advantage of new market opportunities. Investments in capacity are critical in helping developing countries realize their economic potential.

Resources
U.S. Trade Policy and Global Development
Center for Global Development, November 4, 2008
White House and the World Policy Brief by Kimberly Elliott

USTR preference programs
The Office of the United States Trade Representative (USTR)
Explanation and breakdown of current preference programs