Development Cooperation - AFT Initiative - Kariyma Baltimore - Trade Officer

AID-FOR-TRADE INITIATIVE

EPA Awareness Building Workshop

March 11th 2011

Kariyma Baltimore

Ministry of Trade, Industry and Commerce

DEVELOPMENT COOPERATION

AID-FOR- TRADE INITIATIVE

EU AID-FOR-TRADE STRATEGY

DEVELOPMENT COOPERATION WITHIN THE EPA

ELEMENTS OF AN AFT PACKAGE

THE ANTIGUA AND BARBUDA SITUATION

THE WAY FORWARD

CONCLUSIONS

PRSENTATION OUTLINE

The Aid for Trade (AFT) initiative has been heralded as one of the “important development-related outcomes” of the sixth World Trade Organization (WTO) Ministerial Conference held in Hong Kong, China in December 2005

Aid for Trade is about assisting developing countries to increase exports of goods and services to integrate into the multilateral trading system, and to benefit from liberalized trade and increased market access.

AID-FOR –TRADE INITIATIVE

Aid for Trade is a holistic approach which draws various themes together into a single framework. The aid for Trade initiative presents a new concept through which development objectives can be recognized by developing states.

“Projects and should be considered as aid for trade if theseprogrammes activities have been identified as trade-related development priorities in the recipient country’s national development strategies.” […] At the same time, clear […] benchmarks are necessary for reliable global monitoring of aid for trade efforts and […] to assess additionality.”


The Aid-for-Trade Agenda:

Technical trade-related assistance: for example, helping countries to develop trade strategies, negotiate trade agreements, and implement their outcomes;

Trade-related infrastructure: for example, building roads, ports, and telecommunications networks that connect domestic markets to the global economy;

Productive capacity building (including trade development): for example, providing support to allow industries and sectors to build on their comparative advantages and diversify their exports;

Trade-related adjustment assistance: helping developing countries with the costs associated with trade liberalisation such as tariff reductions, preference erosion, or declining terms of trade;

Other trade-related needs: if identified as trade-related development priorities in partner countries’ national development strategies.


In October 2007, the European Union (EU) adopted the ‘EU Strategy on Aid for Trade’, aimed at enhancing its support for developing countries’ capacity to benefit from international trade.

The EU Strategy is a policy framework on aid for trade building on important principles such as “enhancing the pro-poor focus and quality of” and “increasing EU-wide and Member States’ donors capacity for” AfT.

EU AID FOR TRADE STRATEGY

The EU Strategy follows a demand-driven approach, aimed at ‘delivering an effective response to countries own trade-related priorities’.

In terms of quantitative commitments, 10th European Development Fund (2008-2013), will bring the EC’s AfT contribution already very close to the target (euro 1 bn, the other 50% of the overall EU commitment).

EU AID FOR TRADE STRATEGY

A. NATURE AND SCOPE OF THE DEVELOPMENT COOPERATION PROVISIONS

Development cooperation can take financial and non-financial forms (Art. 7)

Areas of cooperation and technical assistance are set out in the individual chapters of the EPA.

Development cooperation shall be implemented within the framework of the rules and relevant procedures provided for by the Cotonou Agreement, in particular the programming procedures of the European Development Fund (EDF), and within the framework of the relevant instruments financed by the General Budget of the EU.

EPA –DEVELOPMENT COOPERATION

Development cooperation shall focus on technical assistance (Art8) :

To build human, legal and institutional capacity

To facilitate compliance with the commitments set out in this Agreement;-

To provide assistance for capacity and institution building for fiscal reform;

To support measures aimed at promoting private sector and enterprise development


To promote diversification of the CARIFORUM economies exports of goods and services through new investment and the development of new sectors;

To enhance the technological and research capabilities of the CARIFORUM States to support the development of infrastructure in CARIFORUM States necessary for the conduct of trade.

It was also agreed to channel EPA-related development resources from the EDF to the regional development fund.


ELEMENTS OF AN AID FOR TRADE STRATEGY

FOR DEVELOPING COUNTRIES

Should be based upon National Development Strategies/Plans

Mainstreaming of Trade

Ownership

Developed tools, instruments, mechanisms to support the effective delivery of AFT

ELEMENTS OF AN AFT STRATEGY

THE ANTIGUA AND BARBUDA EXPERIENCE

Aid-For –Trade Objectives and Priorities:

Trade policy and Regulations

Trade Policy Analysis, Negotiation and Implementation

Economic Infrastructure

Network infrastructure (power,

water, telecom)

Building Productive Capacity

Competitiveness

ANTIGUA AND BARBUDA AND AFT

Presently AFT planning is based upon/guided by the annual national budget, and the work programme of relevant ministries and departments. There is no comprehensive AFT strategy.

The entity responsible for the coordination of Aid-for-Trade Activities is the Ministry of Trade, Industry, and Commerce.


MAIN RESULTS /FINDINGS OF THE THIRD GLOBAL REVIEW OF AID-FOR TRADE:

Objectives and Priorities have been impacted by the economic crisis.

There is a need for mechanisms for monitoring, measuring and collecting data in relation to Aid-for –Trade flows.

The dialogue between donors and state have been strengthen, there has been greater effort to align support around specific country needs and priorities.


MAIN RESULTS /FINDINGS OF THE THIRD GLOBAL REVIEW OF AID-FOR TRADE Contd:

There exists the space for donors to harmonize and coordinate support in a number of areas.

Overall the impact of AFT has not been as large as it could have been.


THE WAY FORWARD ANTIGUA AND BARBUDA AND AFT

Development of a National Aid-For-Trade Strategy by December 2011.

Development of Mechanism to collect, measure, and monitor aid-for-trade- flows.

THE WAY FORWARD

The AFT process necessitates that states have clearly identified and articulated priorities, along with identified mechanisms for delivery, which feed into a wider framework of development.

CONCLUSIONS

THANK YOU

CONTACT INFORMATION

Ministry of Finance, the Economy and Public Administration

(Trade, Industry and Commerce) 2nd Floor first Caribbean Bank Ltd.

Old Parham Rd. P. O. Box 1550

St. John’s Tel #: 462-1542 Fax#: 462-1625

E-mail: [email protected]

mailto:[email protected]

mailto:[email protected]

Development Cooperation - AFT Initiative - Kariyma Baltimore - Trade Officer

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