The Organisation for Economic Co-operation and Development (OECD) reported that Aid-for-Trade disbursements amounted to USD 48 billion in 2023, a 5 percent decline from the previous year. The majority of these funds were directed towards infrastructure and productive sectors, with only 2 percent allocated to trade policy and regulations.
Representatives from Australia, Barbados, the Pacific Islands Forum, and the United Kingdom discussed strategies to enhance the involvement of developing economies in the multilateral trading system. They emphasized the importance of national strategy development and effective coordination with development partners. Progress in implementing the Pacific Aid-for-Trade Strategy was acknowledged, focusing on services, e-commerce, trade facilitation, and quality infrastructure.
Financial support for Comoros and Timor-Leste's WTO accession was highlighted. Support under various initiatives like the Advisory Centre on WTO Law and others was also recognized. Cooperation among developing economies to strengthen trade capacities was noted as crucial. There was a call for increased collaboration with the private sector to scale up financial support.
Members reviewed the European Union's 2024 Aid for Trade Progress Report. The EU provided 36 percent of total disbursements in 2022, equivalent to EUR 22 billion. The report underscored Aid for Trade's role in fostering an investment-friendly environment under the EU's Global Gateway investment strategy.
The Digital Trade Integration Database by the European University Institute revealed varying levels of digital trade integration across economies, with fewer enabling policies seen in lower-income countries. In Africa, regulatory fragmentation, infrastructure gaps, and limited access for small businesses hinder digital trade integration.
To promote digital trade growth on the continent, speakers stressed technical assistance and capacity-building activities to harmonize regulations. Investments in broadband and logistics were deemed essential alongside improving small businesses' access to digital trade finance. Implementing the Digital Trade Protocol of the African Continental Free Trade Area could potentially boost intra-regional trade in services by up to 10.3 percent.
Further details on the WTO-led Aid for Trade initiative are available online.