Thursday, December 15, 2005
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Everything you always wanted to know about Aid For Trade
A big issue that's come up at the Hong Kong Ministerial is the idea of Aid For Trade. What is Aid for Trade? According to paragraph 51 of the draft Ministerial text of the WTO: Aid for Trade should aim to help developing countries, particularly LDCs [Least Developed Countries], 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. Aid for Trade cannot be a substitute for the development benefits that will result from a successful conclusion to the DDA [Doha Development Agenda], particularly on market access. However, it can be a valuable complement to the DDA.That's still a bit vague, so I've asked Paul Applegarth, a Senior Transatlantic Fellow at the German Marshall Fund of the United States -- and the former CEO of the Millennium Challenge Corporation -- to explain the idea in a bit more detail: It has long been agreed that this WTO round should be a Development Round, benefiting the poorest people and the poorest countries in the world. Ironically, even as the on-going talks at the Hong Kong Ministerial struggle with issues important for development like agricultural Market Access and trade-distorting subsidies, there has been an increasing recognition that freer trade alone is not enough. Any trade agreement will need to be accompanied by a development financing package to help the poorest countries build the capacity to participate in freer markets.posted by Dan on 12.15.05 at 10:35 PM Comments: My understanding would be that it's not only developing trade-enhancing capacity building infrastructure on the ground (roads/ports/etc), but standardization of (and access to) trade rules that enhance market access. One example I can think of would be an continuously updated online database of current trade regulations for every country that trade ministries of LDCs could consult to help indigenous companies compete on a level playing field with those in more developed economies. Or providing training and equipment to LDC customs officers and departments to expedite their outflow, so their products don't sit stuck in warehouses for weeks and weeks waiting to be processed. posted by: John Steven on 12.15.05 at 10:35 PM [permalink]You are right that assistance in improving customs procedures could be an important type of Trade Capacity Building/Aid for Trade. For a good example of what a difference improvements in trade facilitation procedures can make, you make want to look at Sri Lanka's efforts to smooth textile exports. posted by: Paul Applegarth on 12.15.05 at 10:35 PM [permalink]Post a Comment: |
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