Concerning 

A Code of Conduct for the Procurement of Goods   to  Ensure Protection of Welfare Standards 

1.  The Foreign Trade Association of the German Retail Trade (AVE, Cologne) whose members are retailing companies and   associations represents the foreign   trade interests of its members. 

2.  Ensuring respect for human life and dignity, improving social standards, and  protecting the environment are among humanityˇs most important tasks.

Sustainable development of the economy and   attendant social progress can be realized only if the natural foundations of   prosperity are respected. 

3.  Desirous of participating in this process,    the retailing companies of the   FTA have adopted a Code of Conduct for the    procurement of goods. The aim is to exercise a positive influence on the procurement   markets without engaging in protectionist behavior, helping to protect basic     human rights and safeguard the environment. 

4. In accordance with the Conventions of the ILO, the Code of Conduct aims at attaining certain minimum standards. The   following requirements are of special importance: 

A. Prohibition of forced labor and prisoner   labor that violates basic human   rights.  

B. Establishment of and compliance with a regulatory framework for  occupational health and safety. 

C. Prohibition of child labor, especially the  exploitation of children under   conditions resembling slavery or harmful to  their health.  

D. Prohibition of workplace practices, conditions and working hours which   violate human rights and labor law. 

E.  Assurance of fair remuneration adequate to   local conditions and the level  of development, allowing a minimum level of satisfaction of basic material needs. 

F. Prohibition of discrimination on the basis of race, skin color, sex,   religion, political convictions or social   background. 

G.  The right to form associations and to    conduct collective negotiations for   a minimum democratic consensus. 

5.  Aware that existing problems are very complex and that some influence can be  exercised, within a framework of appropriate   measures, AVE members undertake to   promote observance of the above requirements by   fixing and implementing  appropriate rules and monitoring their trade    partners as well as their   subcontractors for compliance. 

6.  Observance of the Code of Conduct will rely    on dialogue, cooperation and a  consensual approach that respects the trading partnersˇ responsibility. 

When a violation of the Code of Conduct is    determined, member companies will   immediately enter into negotiations with the   affected suppliers and search for    ways to resolve the problem, taking into   consideration the interests of the   employees and avoiding the effect of a boycott.

If suitable solutions cannot be found within a reasonable period of time, this   is a reason to terminate further    business relations. 

7.  Any action taken by the members of the AVE in no way prejudices the responsibilities of governments of industrialized countries and the EU in their   pursuit of cooperation with developing countries   and a trade policy of open markets governments of developing countries and   the sovereign competence of   countries in establishing regulations for the improvement of their   circumstances, in particular local social and    environmental conditions. 

8. The AVE is prepared, within its legitimation for action, to submit the    substance of this declaration to public discussion and political decision-making   processes. 

                                Cologne, 22 November 1999