7. AITIC and the Aid for Trade Initiative

A. AITIC’s Approach to Aid for Trade

AITIC’s general mandate is to assist less-advantaged countries (LACs) to have more effective trade-led growth, an active participation in the multilateral trading system (MTS) and a successful trade diplomacy. Support is provided through technical assistance and building capacity for trade policy design. AITIC’s strategy is an AFT strategy, consisting of three pillars: i) the identification of national trade capacity needs and priorities in consultation with the governments; ii) personalised assistance to country delegates, in particular to those from least-developed countries (LDCs), and those members and observers of the WTO without permanent representation in Geneva; and iii) addressing the demands through the provision of information, written analyses and advice; seminars and workshops; on the job training for LAC government officials through ad hoc programmes. All the activities of AITIC are part of AFT. The majority of them belong to the first category of AFT, called “trade policy and regulations”.

Until 2007, AITIC provided input on its activities to the Trade Capacity Building Database of the WTO/OECD. From 2008, data on assistance provided under AFT will be reported to the CRS, for the most part under the category “trade policy and regulations.

In 2007, AITIC submitted its answer to the OECD/WTO donor questionnaire, which outlines the Agency’s Aid for Trade (AFT) strategy summarised above. This response is available as part of the “Aid for Trade at a Glance” report of the OECD.

This page will describe a few of the activities of the Agency, focusing on the role it played in carrying forward the discussions on AFT, and in particular in helping countries to access AFT.

B. AITIC’s Input to the Aid for Trade Initiative

1. Drawing Attention to Recipients’ Aid for Trade (AFT) Needs – Pre and post-Trade Policy Review (TPR) Sessions

In order to contribute to the monitoring effort undertaken by the WTO, AITIC assists less-advantaged WTO members in including their AFT priorities within their TPR report through preparatory seminars (e.g. the Organisation of Eastern Caribbean States (OECS)). AITIC also organises post-TPR sessions (i.e. in 2007 for Central African Republic, Gabon and the OECS). In these sessions, national delegations, including the private sector, have the opportunity to draw the attention of the international community (bilateral donors, Inter-governmental Organisations and private investors, etc.) to the national needs for trade-related assistance. The sessions also provide the government with an opportunity to present, in an informal context, several development projects or programmes, which would benefit from a contribution or the involvement of the international community. Intensified connections with bilateral donors and multilateral agencies are developed. For more information about this service provided by AITIC, please click here.

2. Raising Awareness of the Aid for Trade Initiative

Responding to requests from less-advantaged countries, AITIC organises meetings as well as national and regional workshops (e.g. in Cambodia and Lao PDR) in order to raise awareness of the AFT initiative among all stakeholders. In 2007, the Agency organised a cycle of consultative meetings about AFT involving prospective recipients, bilateral and multilateral donors. The consultations helped to identify the specific concerns of each stakeholder about AFT implementation. Furthermore, AITIC circulates background notes on AFT, and the AITIC website contains web pages dedicated to AFT and the Integrated Framework. As a contribution to the AFT discussions, AITIC published a report in 2007 on the outstanding questions of the key challenges facing AFT stakeholders.

3. Contributing to the AFT Monitoring Process

AITIC follows closely the AFT monitoring process. In 2007 the Agency participated in the cycle of regional reviews and prepared analytical reports for the attention of its Participating Members. These Members have expressed their appreciation for AITIC’s services. As part of the monitoring process, recipient countries were requested during summer 2007 to provide information regarding their AFT needs and the assistance already received by replying to a questionnaire. The response rate from recipient countries was low. The 2008 AFT roadmap recommends improving the self-assessment tool by making it simpler, more user-friendly, and more relevant to national planning. AITIC has contributed to the implementation of the roadmap by organising, in cooperation with the OECD, a Workshop on the AFT questionnaire, where delegates from recipient countries, donor countries and international agencies were present. The event started a process of consultations between them, which could spur a better tailoring of the monitoring tool to the specificities of the recipient countries.

AITIC and the OECD co-organised in September 2008 a second meeting to review the revised AFT monitoring questionnaire. Partner countries present made a number of suggestions in view of the finalisation of the questionnaire in October 2008 after an informal session of the WTO Committee on Trade and Development (CTD).

4. Assisting LDCs and other low-income countries to access AFT

To facilitate recipient countries’ access to AFT funding, AITIC is currently preparing a handbook on AFT provided by bilateral donors. This handbook will contain detailed information on AFT policies of a number of donors, including priority target countries, types of activities financed and procedures to apply for funding.

C. AITIC’s Seven Sponsoring Members

AITIC’s seven Sponsoring Members ( Denmark, Finland, Ireland, the Netherlands, Sweden, Switzerland, and the United Kingdom) are all major donors of the Development Assistance Committee (DAC) of the OECD. Their AFT is channelled either directly to the beneficiary countries or through multilateral agencies. As part of their trade-related assistance efforts, all Sponsoring Members participate in the Integrated Framework for LDCs. AITIC is considered as an important component of their support to LDCs and non-resident countries.

D. AITIC’s Other Partnerships

In addition to the Sponsoring Members’ contributions for AITIC’s permanent programmes, the Agency organises a number of projects financed through other partnerships. These projects reflect the specific regional or thematic priorities of the donor countries.

1. Financial support: Australia, Chinese Taipei, New Zealand

2. In-kind Contributions: Brazil, Macedonia, AITIC’s Participating Members and numerous international organisations (e.g. International Trade Centre (ITC), Office of the High Representative for the Least Developed Countries, Landlocked Developing Countries and Small Island Developing States (OHRLLS))

3. Memoranda of Understanding with other agencies and regional groups: International Cooperation and Development Fund (ICDF – Chinese Taipei), International Law Institute (ILI), Organisation of Eastern Caribbean States (OECS), Organisation internationale de la Francophonie (OIF), United Nations Conference on Trade and Development (UNCTAD) and the United Nations Industrial Development Organisation (UNIDO).

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