Aid for Trade and
Development
Part I
Rajan Dhanjee
Office of the Director
Division on International Trade in Goods and
Services, and Commodities
UNCTAD
Background (1/2)
• Trade, not aid?
• Developing countries’ difficulties in:
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Implementing Uruguay Round agreements
Adjusting to trade reform (preference
erosion, loss of customs revenue, declining
terms of trade, etc.)
Benefiting from preference schemes
Overcoming “supply-side” (productive
capacity, infrastructure, etc.) and
institutional constraints
Enhancing trading competitiveness to
promote development
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Background (2/2)
• Growing acceptance need for AfT:
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ODA pressures/commitments
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Monterrey Consensus
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UN Millennium Project Report (Sachs Report)
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UN S-G message to 5th WTO Ministerial
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World Summit Outcome
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Blair Commission
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Joint IMF/World Bank proposal
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6th WTO Ministerial

Para. 57 HKMD:
 Should aim to help developing
countries, particularly LDCs, to
build supply-side capacity and
trade-related infrastructure
needed to implement and
benefit from WTO Agreements
and more broadly, expand their
trade
 Not substitute for development
benefits from successful
conclusion to Doha Round however can be a valuable
complement
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WTO Task Force (1/2)
•
AFT categories:
1. Trade policy and regulations
2. Trade development
3. Trade-related infrastructure
4. Building productive capacity
5. Trade-related adjustment
6. Other trade-related needs
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WTO Task Force (2/2)
• AFT objectives to:
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
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Enable developing countries, particularly LDCs, to use
trade more effectively to promote growth, development
and poverty reduction,and to achieve their development
objectives, including the MDGs.
Help developing countries, particularly LDCs, to build
supply-side capacity and trade-related infrastructure in
order to facilitate their access to markets and to
export more.
Help facilitate, implement, and adjust to trade reform and
liberalization.

Assist regional integration.

Assist smooth integration into the world trading system.

Assist in implementation of trade agreements.
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UNCTAD role in AfT
•
•
Derived from core function as UN focal point
on integrated treatment of trade and
development
Comparative advantage in:
1. Providing integrated perspective on trade and
development strategies and policies
2. Promoting coherence at national, regional and
international levels
3. Drawing on 3 pillars (intergovernmental policy
dialogue and consensus-building, research and
policy analysis, technical assistance)
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Relevant UNCTAD activities (1/2)
• Assistance/support in:
- Participating effectively in of negotiations, WTO
accession processes, implementing trade
agreements, developing services sectors,
addressing NTBs, meeting product standards and
regulations
- Formulating trade, investment, technology-related
policies
- Drafting and implementing competition laws
- Adjusting to trade reform
- Trade facilitation infrastructure, e.g. customs
automation
- Databases, e.g. on NTBs
- Promotion of Enhanced Integrated Framework
- Enterprise development
- One UN country programmes
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Relevant UNCTAD activities (2/2)
• UNCTAD/Comsec Conference
- G24 Working Papers
- UNCTAD XII pre- and parallel events
- Forthcoming book with UNU “Aid for Trade and
Development: Global and Regional Perspectives”
• Participation in:
- WTO D-G’s Advisory Group on AfT
- UN Cluster on Trade and Productive Capacity
- Working Group on Trade of UN Executive
Committee on Economic and Social Affairs
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Accra outcome on AfT (1/2)
• Accra Declaration (para. 11), Consensus paras.
61, 71, 106:
1.
Stronger national action and international support
2.
Adequately resourced, increased, more effective,
additional, predictable, sustainable and effective
3.
Based on each beneficiary country’s needs and
priorities – should mainstream trade and integrate
Aft into development strategies in accordance with
national priorities
4.
Mechanisms to ensure efficient and effective
utilization
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Accra outcome on AfT (2/2)
5.
Implemented through multilateral and bilateral
channels with UN and other multilateral
organizations playing important role
6.
UNCTAD should continue to:
a. Play important role in developing and
implementing AfT projects
b. Provide focused support in building capacity of
developing countries to meaningfully
participate in and benefit from the international
trading system and address its opportunities
and challenges
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Issues for discussion
1.
Why do developing countries or regions need Aft
– can you provide examples of such needs – how
are trade, development and poverty reduction
linked?
2.
Are the categories and objectives of AfT listed
above appropriate –can you think of more - how
new or trade-related are these categories?
3.
Do you agree with the principles relating to AfT
highlighted above (complement but not substitute
for Round, adequate, additional, based on
beneficiary country’s needs and priorities,
mainstreaming into development strategies)
– can you think of others?
4.
Is there anything more UNCTAD could do on AfT?
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