Aid for Trade Concepts, Categories, Commitments Dr. Regine Qualmann – GTZ Sector Programme on Trade

Concepts WTO Task Force on Aid for Trade Trade Liberalisation will not translate into development if countries lack capacities to trade Two pronged approach: continue building capacity to negotiate trade agreements, expand from multilateral to regional Enhance support to developing capacity to trade Re-launch Integrated Framework for LDCs as a holistic approach to trade policy analysis and implementation, address ownership issues 01.08.2019

OECD – WTO Definitions of AfT Categories 1. Trade policy and regulations: trade policy and planning, trade facilitation, regional trade agreements, multilateral trade negotiations, multi sector wholesale/ retail trade and trade promotion. Includes training of trade officials, analysis of proposals and positions and their impact, support for national stakeholders to articulate commercial interest and identify trade-offs, dispute issues institutional and technical support to facilitate implementation of trade agreements and to adapt to and comply with rules and standards. 01.08.2019

Categories cont. 2. Trade development: investment promotion analysis and institutional support for trade in services business support services and institutions public-private sector networking e-commerce trade finance trade promotion, market analysis and development. Subset from building productive capacity narrowed down to the trade related percentage. 01.08.2019

Categories cont. 3. Trade-related infrastructure: physical infrastructure including transport and storage Communications, and energy generation and supply. 4. Building productive capacity: Includes business development and activities aimed at improving the business climate privatisation assistance to banking and financial services agriculture, forestry, fishing, industry, mineral resources and mining, tourism. Includes trade and non-trade related capacity building. 01.08.2019

Categories cont. 5. Trade-related adjustment: A new category with a separate CRS code has been agreed on by OECD. 6. Other trade-related needs: Other trade related support not captured under the categories above. Includes trade and non-trade related capacity building. 01.08.2019

Aid for Trade Commitments by OECD Members: OECD as a whole: 4 bn USD annually from 2010 Includes all AfT categories Largest AfT donors ex EU: USA and Japan EU (Commission and Member States): 2 bn € annually from 2010, 1 bn each by Commission and EU MS Commitment relates to categories 1 and 2 only infrastructure and other adjustment measures would come in addition 01.08.2019

Current AfT commitments and instruments of EU Current levels of AfT committed (2006): http://tcbdb.wto.org 800 Million € by Commission 360 Million € collectively by MS (Germany: 60 – 80 Million p.a. 2002-06) “gap” is largest for EU MS: 640 Million Measures put in place to meet objectives: EU Aid for Trade Strategy adopted in October 2007 “up to 50%” of additional AfT to go to ACP countries Improve coordination among EU MS to avoid Aid for Trade orphans Support Enhanced Integrated Framework and expand similar approach to non-LDCs Otherwise continue with same instruments (EDF for Commission, bilateral and multilateral contributions by MS) 01.08.2019

E-Mail: regine.qualmann@gtz.de Internet: http://www.gtz.de/trade Contact: E-Mail: regine.qualmann@gtz.de Internet: http://www.gtz.de/trade 01.08.2019