ADS 225: Program Principles for Trade and Investment Activities and the 'Impact on U.S. Jobs' and 'Workers' Rights'

To this end, USAID pursues economic growth activities as a means to accomplish the objective of accelerating broadly shared growth and increasing incomes. USAID implements a broad range of activities to improve economic policies and institutions, to encourage the development of the private sector, to establish a sound investment climate, to support trade, and to more actively participate in the multilateral and regional trading systems. The U.S. vision of the world economy is one of expanding global trade and bringing the benefits of international trade to developing countries. The U.S. National Security Strategy notes the importance to the U.S. of prosperous and stable developing countries. Open markets promote economic and political freedom, and in turn, create the foundation for competitive markets, democratic societies, and the integration of developing countries into the world economy. To promote America's interests around the world, which include building and creating opportunities for economic growth and empowerment in developing countries, this ADS chapter provides the guidance for funding complementary trade- and investment-related activities with bilateral assistance funds. The chapter applies to activities financed with appropriated funds, including those generated through Public Law 480 programs. It contains program design and implementation procedures to ensure that USAID-funded "trade and investment" activities do not provide financial incentives and other assistance for U.S. companies to relocate operations abroad if it is likely to result in the loss of U.S. jobs, or contribute to violations of internationally recognized workers' rights defined in 19 U.S.C. 2467(4). The Bureau for Economic Growth, Education, and Environment (E3) is responsible for maintaining this chapter and providing technical advice to Operating Units on designing and implementing trade and investment activities that comply with this chapter. Operating Units are responsible for designing, approving, monitoring, and implementing trade and investment-related activities in compliance with the requirements in ADS 225 and as part of the project design process defined in ADS 201. The Office of the General Counsel (GC) and/or the Regional Legal Advisor (RLA) is responsible for advising Operating Units on whether a proposed activity meets the requirements of the law and this chapter and the language to be included in contracts, grants, and other agreements to ensure compliance with this chapter. This ADS chapter classifies "trade and investment" activities into three categories: Permitted, Prohibited, and Gray-area. Permitted activities are those which, even though they have a trade or investment orientation, by their nature would be too indirectly linked to any potential relocation or are not consciously directed at inducing a business to relocate. Examples of Permitted Activities include providing technical assistance to developing countries to improve their trade policies and regulations, supporting the development of trade-related infrastructure, and promoting trade through trade missions and exhibitions. Prohibited activities are those that would likely result in the loss of U.S. jobs or contribute to the violation of workers' rights. Gray-area activities are those that require further review and consideration in the design process to determine the likely impacts on jobs and relocation. If there is any doubt about whether a specific activity involves investment promotion, the Operating Unit must resolve the doubt by considering the activity to involve investment promotion and analyze the activity under this chapter. The chapter also requires that Operating Units include a required clause in contracts, grants, and other agreements to ensure compliance with this chapter. The clause must state that the activity is not intended to provide financial incentives or other assistance for U.S. companies to relocate operations abroad if it is likely to result in the loss of U.S. jobs, or contribute to violations of internationally recognized workers' rights defined in 19 U.S.C. 2467(4).