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Aid for Trade Regional Workshop on Trade-led Development in the Multilateral Trading System Taufiqur Rahman Head, LDC Unit, Development Division, WTO Colombo, Sri Lanka, 26-28 October 2016 1

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Page 1: Aid for Trade for Trade.pdfBetween 2002-05 and 2014: • Commitments steadily increased from 25 to 55 US$ billion (+120%) • Economic infrastructure increased to US$ 31.3 billion

Aid for Trade Regional Workshop on Trade-led Development in the Multilateral Trading

System

Taufiqur Rahman

Head, LDC Unit, Development Division, WTO

Colombo, Sri Lanka, 26-28 October 2016

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Page 2: Aid for Trade for Trade.pdfBetween 2002-05 and 2014: • Commitments steadily increased from 25 to 55 US$ billion (+120%) • Economic infrastructure increased to US$ 31.3 billion

Aid for Trade

Launched at the Hong Kong

Ministerial Conference in 2005.

Appropriate mechanisms to

secure additional financial

resources.

A focus rather than a new

concept.

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Page 3: Aid for Trade for Trade.pdfBetween 2002-05 and 2014: • Commitments steadily increased from 25 to 55 US$ billion (+120%) • Economic infrastructure increased to US$ 31.3 billion

Aid for Trade : the mandate

Mandate from the 6th WTO Ministerial Conference.

“Aid for Trade should aim to help developing countries,

particularly LDCs, to build the supply-side capacity and trade-

related infrastructure that they need to assist them to

implement and benefit from WTO Agreements and more

broadly to expand their trade”.

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Page 4: Aid for Trade for Trade.pdfBetween 2002-05 and 2014: • Commitments steadily increased from 25 to 55 US$ billion (+120%) • Economic infrastructure increased to US$ 31.3 billion

Aid for Trade - Task force recommendations

(2006)

The 4 main recommendations of the task

force:

- Strengthening the demand side

- Strengthening donor response

- Strengthening the bridge between demand

and response

- Strengthening monitoring and evaluation

More, predictable, sustainable and efficient

financing.

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Page 5: Aid for Trade for Trade.pdfBetween 2002-05 and 2014: • Commitments steadily increased from 25 to 55 US$ billion (+120%) • Economic infrastructure increased to US$ 31.3 billion

Aid-for-Trade - Approach

Mainstreaming trade into domestic and regional development

frameworks

Mainstreaming trade into donor policies

Support for regional trade integration

Strengthening approaches encouraging private sector involvement

Monitoring and evaluation (more efficient and better M&E)

Not a new fund, part of existing ODA 5

Page 6: Aid for Trade for Trade.pdfBetween 2002-05 and 2014: • Commitments steadily increased from 25 to 55 US$ billion (+120%) • Economic infrastructure increased to US$ 31.3 billion

Aid for Trade falls under four broad categories:

o Trade policies and regulations

To formulate, implement and participate in negotiations and regional trade

agreements (most recently and trade facilitation.) Create/update trade policies.

o Economic infrastructure

Investing in infrastructure - roads, ports, telecommunications, energy networks -

necessary to link products to world markets.

o Building productive capacity

Strengthening economic sectors - improving test laboratories, banking and

financial services; agriculture; tourism.

o Trade-related adjustment.

Help with transition costs of liberalization. For instance, contributions to

government budget to help implement accompanying measures that allow them

to take advantage of trade liberalization; implementation of reforms and trade

adjustments.

Aid for Trade - Scope

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Page 7: Aid for Trade for Trade.pdfBetween 2002-05 and 2014: • Commitments steadily increased from 25 to 55 US$ billion (+120%) • Economic infrastructure increased to US$ 31.3 billion

The Role of the WTO

o Raising awareness, analysis and debate.

o Advocacy.

o Committee on Trade and Development – Aid for Trade.

o Implementation of Aid for Trade Work Programme

o Conduct the Monitoring and Evaluation exercise with the OECD

o Host the Global Review of Aid for Trade.

The responsibility for implementation rests with Member countries and

development organizations.

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Page 8: Aid for Trade for Trade.pdfBetween 2002-05 and 2014: • Commitments steadily increased from 25 to 55 US$ billion (+120%) • Economic infrastructure increased to US$ 31.3 billion

o WTO Aid for Trade Unit

o Trade-related technical assistance

o Standards and Trade Development Facility (STDF)

o Enhanced Integrated Framework (EIF)

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Role of the WTO - Implementation

Page 9: Aid for Trade for Trade.pdfBetween 2002-05 and 2014: • Commitments steadily increased from 25 to 55 US$ billion (+120%) • Economic infrastructure increased to US$ 31.3 billion

Global Reviews of Aid for Trade

5 Global Reviews of Aid for Trade (2007, 2009, 2011, 2013, 2015)

Monitoring and Evaluation Exercise

- Monitoring of flows – US$ 250.4 billion total Aid for Trade disbursed in

the period 2006-2013.

- Questionnaires et case stories – contributions received from all

regions of the world.

- 5 Aid for Trade at a Glance publications

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Page 10: Aid for Trade for Trade.pdfBetween 2002-05 and 2014: • Commitments steadily increased from 25 to 55 US$ billion (+120%) • Economic infrastructure increased to US$ 31.3 billion

Results

Increase resources for Aid

for Trade

Improvement in the

coherence of trade and

development policies

Improvement in trade

mainstreaming

Increase assistance to

regional trade integration

Increase private sector

involvement

Evidence of impact

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Page 11: Aid for Trade for Trade.pdfBetween 2002-05 and 2014: • Commitments steadily increased from 25 to 55 US$ billion (+120%) • Economic infrastructure increased to US$ 31.3 billion

Aid for Trade Flows Source : Aid for Trade at a Glance 2015, WTO/OECD

Aid for Trade disbursements by region and income level, 2006-2013 (US$ & % of total)

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Page 12: Aid for Trade for Trade.pdfBetween 2002-05 and 2014: • Commitments steadily increased from 25 to 55 US$ billion (+120%) • Economic infrastructure increased to US$ 31.3 billion

Aid for Trade – Commitments - World Source: OECD-CRS, Creditor reporting system

Between 2002-05 and 2014:

• Commitments steadily

increased from 25 to 55 US$

billion (+120%)

• Economic infrastructure

increased to US$ 31.3 billion

(+142%)

• Building-productive capacity

increased to US$ 22,5 billion

(+101%)

In 2014, trade policy & regulations

represented 1.8% of the year total

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24.9

32.7

43.0

52.855.9 54.8

0

10

20

30

40

50

60

02-05avg.

06-08avg.

09-11avg.

2012 2013 2014

Trade-relatedAdjustment

Trade Policy &Regulations

Building ProductiveCapacity

EconomicInfrastructure

US$, bill. (const. 2014)

Page 13: Aid for Trade for Trade.pdfBetween 2002-05 and 2014: • Commitments steadily increased from 25 to 55 US$ billion (+120%) • Economic infrastructure increased to US$ 31.3 billion

1.00

1.04

1.65

1.95

2.89

3.33

5.46

7.79

8.62

9.84

Netherlands

United Kingdom

African Development Bank

Asian Development Bank

France

United States

Germany

World Bank

Japan

EU Institutions

Aid for Trade – top 10 donors Source: OECD-CRS, Creditor reporting system

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Commitments in US$ billion (2012-14 avg.)

Page 14: Aid for Trade for Trade.pdfBetween 2002-05 and 2014: • Commitments steadily increased from 25 to 55 US$ billion (+120%) • Economic infrastructure increased to US$ 31.3 billion

Aid for Trade to Asia – trends Source: OECD-CRS, Creditor reporting system

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12.4

14.516.0 16.4

23.2

21.3

10.511.9 12.4

14.115.1

0

5

10

15

20

25

2002-05avg.

2006-08avg.

2009-11avg.

2012 2013 2014

Commitments DisbursementsUS$, bill. (const. 2014)

Page 15: Aid for Trade for Trade.pdfBetween 2002-05 and 2014: • Commitments steadily increased from 25 to 55 US$ billion (+120%) • Economic infrastructure increased to US$ 31.3 billion

Aid for Trade to Asia – sectors (2012-14 average) Source: OECD-CRS, Creditor reporting system

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66.7%

31.3%

2.0% 0.0%

EconomicInfrastructure

Building ProductiveCapacity

Trade Policy &Regulations

Trade-relatedAdjustment

Disbursements (2012-14)

69.7%

28.6%

1.8% 0.0%

EconomicInfrastructure

Building ProductiveCapacity

Trade Policy &Regulations

Trade-relatedAdjustment

Commitments(2012-14)

US$ 20.8 billion US$ 14.3 billion

Page 16: Aid for Trade for Trade.pdfBetween 2002-05 and 2014: • Commitments steadily increased from 25 to 55 US$ billion (+120%) • Economic infrastructure increased to US$ 31.3 billion

0.35

0.42

0.45

0.50

0.57

0.66

0.68

0.70

0.71

0.75

1.51

1.61

1.68

2.82

4.77

China

Iraq

Cambodia

Jordan

Indonesia

Uzbekistan

Sri Lanka

Nepal

Philippines

Myanmar

Bangladesh

Pakistan

Afghanistan

Vietnam

India

Aid for Trade to Asia – recipients (sub-regions and top 15) Source: OECD-CRS, Creditor reporting system

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65%

26%

7%

2%

South & Central Asia

Far East Asia

Middle East

Asia (regional)

US$ 20.8 bill.

Commitments (2012-14 avg.) US$ billion and %

Page 17: Aid for Trade for Trade.pdfBetween 2002-05 and 2014: • Commitments steadily increased from 25 to 55 US$ billion (+120%) • Economic infrastructure increased to US$ 31.3 billion

Finance for Development

ODA

OOF

FDI

Remittances

0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

80.0

LICs LMICs UMICs

Per cent

(<= $1,045 =>) (<= $4,124 =>) (<= $12,754)

per capita GNI (log scale)

ODA is especially important for LICs

Source: OECD

Page 18: Aid for Trade for Trade.pdfBetween 2002-05 and 2014: • Commitments steadily increased from 25 to 55 US$ billion (+120%) • Economic infrastructure increased to US$ 31.3 billion

Promoting connectivity

The theme of the 2016-2017

work programme

- Continued emphasis on trade

costs, particularly in the area of

services

- E-commerce

- Investment, infrastructure

upgrading and the

development of related

services markets

- Assistance to the

implementation of the Trade

Facilitation Agreement

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Page 19: Aid for Trade for Trade.pdfBetween 2002-05 and 2014: • Commitments steadily increased from 25 to 55 US$ billion (+120%) • Economic infrastructure increased to US$ 31.3 billion

The Monitoring and Evaluation Exercise

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Questionnaires and case story templates

www.wto.org/aftmonitoring

Electronic Survey Links View as PDF file

Partner Country questionnaire WT/COMTD/AFT/W/64

Regional Economic Community /

Transport Corridor questionnaire

WT/COMTD/AFT/W/65

Donor questionnaire WT/COMTD/AFT/W/66

South-South Partner questionnaire WT/COMTD/AFT/W/67

Case story template WT/COMTD/AFT/W/68

Page 20: Aid for Trade for Trade.pdfBetween 2002-05 and 2014: • Commitments steadily increased from 25 to 55 US$ billion (+120%) • Economic infrastructure increased to US$ 31.3 billion

Aid for Trade and the SDGs

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