Aid for Trade – Aid for Trade is an initiative that helps developing countries, especially the least developed countries. Build their supply capacity and build the infrastructure they need to increase their trading opportunities and better integrate into the rules-based multilateral Trade. Launched at the World Trade Organization (WTI) Ministerial Conference in Hong Kong in December 2005. This initiative has become essential for ITC’s work. The four pillars of the program directly link to the three strategic objectives of the Center: to help create more favourable conditions in national policies for companies to export; strengthen national and regional institutions that provide services to exporters.

ITC’s Role

ITC is the combined agency of the United Nations and the WTO and is the only. Development agency dedicated exclusively to developing small and medium-sized enterprises (SMEs). Our leading role is to facilitate the integration of SMEs in regional and global value chains. We work with and through partners to strengthen the competitiveness of SME exporters and create dynamic and sustainable export sectors that offer business opportunities. Especially for women, youth and the poor, and underserved communities.

ITC’s objective is to encourage beneficiary countries to develop their private sector’s technical capacity and ensure their views includes in the Aid for Trade strategy. On the other hand, ITC contributes to the business perspective. Promoting the private sector’s voice in developing trade policies and offering solutions to supply-side constraints that prevent developing countries from participating fully in world trade.

Private Sector Participation

Therefore a vital component of the Aid for Trade program is strengthening dialogue with the private sector. Therefore as stated in its Work Program on Aid for Trade. The WTO recognizes ITC’s role in “promoting the role of small and medium-sized enterprises and micro-enterprises within the framework of the Aid for Trade initiative “.

However ITC has a considerable comparative advantage in engaging the private sector in the multilateral trading system. Including negotiating accession to the WTO as one of its components. The number of LDCs seeking accession to the WTO is still considerable. Therefore ITC complements the work of the WTO and the United Nations Conference on Trade and Development (UNCTAD) by establishing public-private partnerships to benefit from membership.

ITC works with business circles to highlight private sector concerns so that the voice of business includes in the Aid for Trade process. And also ITC has organized numerous pro-business events supporting the inclusion of business voices in the Doha Development Therefore agenda and the negotiation of Economic Partnership Agreements. However the private sector assists in managing and acquiring technical expertise to promote business development effectively.

However ITC documents the interests and concerns of companies through its website. ITC also disseminates exemplary partnership cases between the public and private sectors. Thus, other countries can adapt and develop their approaches to create a favourable business environment.

ITC objectives within Aid for Trade

ITC’s program for 2012-2013 focuses on five main areas:

  • resource mobilization,
  • incorporation of Trade in development plans and programs,
  • regional trade integration,
  • private sector development, and
  • monitoring and evaluation of Aid for Trade.

The program’s objective is to promote greater coherence in Aid for Trade between the trade and development communities. Focusing on results.

Global Review of Aid for Trade

The Global Review of Aid for Trade is held every two years to monitor the initiative’s progress and ensure that the needs of recipient countries are being met. The first Review was born in 2007 after the WTO Working Group recommended establishing a monitoring body to carry out regular reviews based on reports from various stakeholders.

The main objectives of the Global Review are to check the progress of Aid for Trade. Identify what steps need to take, and strengthen the monitoring and evaluation of the initiative. These goals intend to motivate donors and recipients to move forward on the Aid for Trade agenda.

ITC in the 4th Global Review

and also, The central theme of the Fourth Global Review, which took place on July 8-10, 2013 in Geneva. Therefore was “Connecting to value chains”. It examined how development assistance can connect businesses from developing and least developed countries to international value chains in the context of the debate on the post-2015 development agenda. The leading independent of the ITC was to ensure that the point of view of the business sector about the effectiveness of the initiative reflects in the dialogue on Aid for Trade.

The three-day Exam focused on:

  • the relationship between value chains, Trade and the post-2015 development agenda;
  • strategies to connect developing countries to value chains;
  • the development challenges and benefits that may arise from the strategies; Y
  • prospects for the Aid for Trade Initiative.

Also Read: International Trade – Definition, History, and More