UNECE / ITC Joint ECE Committee on Trade and ITC High-level Segment June 18 th, 2012 UNDP’s support of trade diversification in Wider Europe - Aid for Trade project United Nations Development Programme

Linking trade with human development UNDP’s focus is to help developing countries: –build capacity to compete internationally by overcoming supply side constraints; –build capacity to negotiate, interpret and implement trade policies in a manner that prioritizes poverty reduction and human development; and –incorporate pro-poor, development-centered trade policies into national development strategies, including poverty reduction programmes. UNDP and TRADE

Policy Advisory Services UNDP AfT Working Principles Basic orientation: 1.Eradication of extreme poverty (UN MDG) 2.Promotion of trade and private sector as a tool for leveraging human development Approaches: 1.Multi-level, multi-disciplinary 2.Promoting regional integration 3.Inclusive green, inequality-reducing economic growth 4.Balance between productivity, equality, sustainability, empowerment

Wider Europe - Aid for Trade Project Overview Donors: Ministry for Foreign Affairs of Finland Government of Luxembourg Implementation period: Phase I: 2009 – 2011 Phase II: 2011 – 2014 Budget: (in million Euro) Phase I: 1.8 Phase II: 4.7

Wider Europe - Aid for Trade Project Overview 11 countries in Central Asia, South Caucasus, Western CIS

Wider Europe - Aid for Trade Phase I 1.AfT Need Assessment CA 2.Economic development along transport corridors in CA for SME, farmers and associations 3.AfT Need assessment Caucasus & WE

Wider Europe - Aid for Trade Phase II I. Linking products with key markets along trade corridors Business Development Centres : ARM, GEO, KAZ, KGZ, TAJ Business training & SME advise : GEO, KAZ, KGZ, MDL, TAJ Co-financing innovative investments : ARM, KAZ, KGZ, TAJ Trade information: business/exporters/investment guides : GEO, online market places : ARM, KGZ, TAJ Trade in services : GEO Vocational skills : GEO Environmental friendly production : KGZ, TAJ II. Better use of trade opportunities Electronic trading facility for light industry : BEL Capacity development for fruit sector : MDL Oblast trade strategy : TAJ Trade policy – national export strategy, WTO tariff commitments, export financing : UKR

Wider Europe - Aid for Trade Phase II III.Overcoming trade barriers Informal trade barriers: research, dialogue process, information (GEO, MDL) Trade Capacity Development Local: oblast administration, staff of trade/business/information centers (ARM, GEO, TAJ, UKR) Central Asia trilateral : governments, trade support agencies, entrepreneurial associations (KGZ, TAJ, UZB) IV.SMEs to benefit from trade Application of new technologies, tools for better market access for SMEs (Central Asia – Western China) FairTrade: certification, B2B, SME network, trade fairs (Central Asia)

CRS criteria AfT Project, Phase II Integrated AfT approach – 1.strengthening productive base and 2.assist in implementing trade agreements -- linking micro with meso and macro level: I.TRADE POLICY AND REGULATIONS (TPR) 1.Trade Policy and administrative management (33110) Oblast Trade Development Strategy (TAJ), Study on trade in Eastern KAZ, Study on state export finance (UKR) 2.Trade facilitation 3.Regional trade agreements (RTAs) 4.Multilateral trade negotiations 5.Trade education/training (33181) Trade Capacity Development for oblast administration, staff of trade centers (ARM, GEO, TAJ, UKR), and Central Asia trilateral (KGZ, TAJ, UZB)

CRS criteria AfT Project, Phase II Integrated AfT approach II.TRADE DEVELOPMENT (TD) 1.Building productive capacity (33210) 2.Banking and finance (240xx) 3.Business support services and institutions (25010) Business Development Centres : ARM, GEO, KAZ, KGZ, TAJ Business training & SME advise: GEO, KAZ, KGZ, MDL, TAJ Trade information: business/exporters/investment guides GEO online market places ARM, KGZ, TAJ Trade in services : GEO Vocational skills : GEO Environmental friendly production : KGZ, TAJ III.ECONOMIC INFRASTRUCTURE (EI)

CRS criteria AfT Project, Phase II Integrated AfT approach IV.BUILDING PRODUCTIVE CAPACITY (BPC) 1.Banking and Financial Services (24010 to 24081) Co-financing innovative investments : ARM, KAZ, KGZ, TAJ 2.Business and other Services ( ) market and trade information centres: ARM, GEO, KAZ, KGZ, TAJ Capacity development for associations: ARM, KAZ, KGZ, MLD, TAJ, UZB; proposed : UKR 3.Agriculture (31110 to 31195) value addition by introducing eco-friendly new technologies: clay-wall greenhouses, organic manure, producing and storage of fruits 4.Forestry 5.Fishing 6.Industry 7.Mineral resources and mining 8.Tourism (33210) Training of tourism service providers: GEO V.TRADE RELATED ADJUSTMENTS (TRA)

TRADE and HUMAN DEVELOPMENT UNIT Scaling up UNDP’s substantive support to Aid for Trade and the Enhanced Integrated Framework (corporate resource center for trade and development) How? – Mainstreaming trade (policy; institutional; international cooperation) – Human Development Impact Assessment of Trade and Investments Policies – Develop capacities of trade related institutions (Capacity Development) – Support UNDP’s regional and national programming towards enhancing competitiveness (private sector development portfolio) – Facilitating UN coordination (CEB Cluster, SCTD, etc.)

TRADE & HUMAN DEVELOPMENT UNIT Geneva, Switzerland REGIONAL CENTER for EUROPE AND CIS Bratislava, Slovakia