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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: Implementing Uruguay Round agreements
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Aid for Trade and DevelopmentPart 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: • 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
Background (2/2) • Growing acceptance need for AfT: • ODA pressures/commitments • Monterrey Consensus • UN Millennium Project Report (Sachs Report) • UN S-G message to 5th WTO Ministerial • World Summit Outcome • Blair Commission • Joint IMF/World Bank proposal
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
WTO Task Force (1/2) • AFT categories: • Trade policy and regulations • Trade development • Trade-related infrastructure • Building productive capacity • Trade-related adjustment • Other trade-related needs
WTO Task Force (2/2) • AFT objectives to: • 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.
UNCTAD role in AfT • Derived from core function as UN focal point on integrated treatment of trade and development • Comparative advantage in: • Providing integrated perspective on trade and development strategies and policies • Promoting coherence at national, regional and international levels • Drawing on 3 pillars (intergovernmental policy dialogue and consensus-building, research and policy analysis, technical assistance)
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
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
Accra outcome on AfT (1/2) • Accra Declaration (para. 11), Consensus paras. 61, 71, 106: • Stronger national action and international support • Adequately resourced, increased, more effective, additional, predictable, sustainable and effective • Based on each beneficiary country’s needs and priorities – should mainstream trade and integrate Aft into development strategies in accordance with national priorities • Mechanisms to ensure efficient and effective utilization
Accra outcome on AfT (2/2) • Implemented through multilateral and bilateral channels with UN and other multilateral organizations playing important role • UNCTAD should continue to: • Play important role in developing and implementing AfT projects • 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
Issues for discussion • Why do developing countries or regions need Aft – can you provide examples of such needs – how are trade, development and poverty reduction linked? • Are the categories and objectives of AfT listed above appropriate –can you think of more - how new or trade-related are these categories? • 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? • Is there anything more UNCTAD could do on AfT?