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Aid for Trade review: progress in 2 main directions
“I see possible progress in 2 main directions:
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improve our analytical tool
box, numbers, data, tables, performance indicators. Not only
with donors but also with recipient countries. This
fundamental principle of ownership is also about the way
benchmarking progress is done, so that accountability can
work across the board.
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increase country focus,
regional focus, sector focus. The format we inaugurated in
07 with regional reviews is in my view worth replicating in
08
On top of these 2 directions, I
also believe we would benefit from more business and civil
society input, and that we should reflect on this.”
Closing remarks by WTO Director-General Pascal Lamy at the 21
November General Council debate on Aid for Trade
Aid for Trade: fixing unfair trade rules should be WTO’s
focus, says IATP
The Institute for Agriculture and Trade Policy (IATP) published
a blistering commentary on inter-agency efforts on Aid for Trade
in advance of the WTO Global Review. In a press release issued
19 November, sub-titled Fixing Unfair Trade Rules Should Be
WTO’s Focus, IATP claims that:
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There is no additional aid on
offer. Instead money will have to be diverted from other
development assistance, such as health and education, to
accommodate trade. Overall development aid declined in 2006.
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It is unclear what conditions
will be attached to Aid for Trade and whether those
conditions will be used to perpetuate unfair trade rules and
the current WTO agenda, which does not adequately reflect
development needs.
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Donors and agencies use
different definitions of what counts as Aid for Trade,
making pledges and assessments impossible to monitor.
Further, IATP says that Aid for
Trade priorities “should be defined by recipient countries in
consultation with all affected stakeholders”.
“The WTO should get back to the task of creating a better
trading system,” said Anne-Laure Constantin,of IATP’s Trade
Information Project. “The latest proposals for new trade rules
don’t give governments the tools they need to build strong
economies, increase employment, and respect environmental
constraints. If WTO members are able to build a better trading
system, then Aid for Trade could be a useful and important
addition.”
“IATP works with organizations around the world to analyze
how global trade agreements impact domestic farm and food
policies. Alongside a global coalition, IATP advocates for fair
trade policies that promote strong health standards, labor and
human rights, the environment and, most fundamentally,
democratic institutions.” From IATP online at
www.iatp.org.
Bolstering trade for development and security
“The best hope for fostering development and our common security
in the hemisphere and beyond is through bolstering international
trade.” This, Hossein Rostami, Director, Economic Policy,
Canadian International Development Agency, told the 21 November
special session of the WTO General Council on Aid for Trade, is
the priority of the Canadian government defined in a mid-October
policy speech. The four objectives in Canada’s agenda for
greater aid effectiveness are: a more strategic focus on
interventions so as to identify areas of greatest impact;
improvements in programme delivery; more effective use of
Canada’s international assistance; and clear accountability on
the part of development partners in their commitment to
achieving results.
According to Rostami, Africa is the largest recipient (30%) of
Canada’s funding commitments, followed by the Americas (25%) and
Asia (24%), with a further 15% non-region specific. In addition,
said Rostami, Canada has committed to doubling assistance from
2001-02 levels by 2010-11 and Aid for Trade funding will be
derived from that regular increase.
EU strategy for Aid for Trade: “more … quicker … better aid”
In a statement to the 21 November special session of the WTO
General Council on Aid For Trade
EU Commissioner for Development Louis Michel resumed the main
tenets of the EU Joint Strategy on Aid for Trade, published 15
October 2007 as “more aid … better [aid] … quicker aid”. This
would mean, according to Michel, maintaining pressure on donors
to live up to pledges to increase financial contributions and
making trade a priority in development strategies, with Aid for
Trade based on developing countries' own assessments of their
strengths and weaknesses. Michel stressed that Aid for Trade
would be delivered more effectively through joint analysis,
joint response and joint programming amongst donors, rather than
through new multilateral instruments or global funds. “I don't
believe in global funds or multilateral initiatives as offering
the magic solution for aid for trade”, he said.
As for funding, Michel told the General Council that the EU has
pledged to increase its trade related assistance to a total of
EUR 2 billion by 2010. Further, EU member states will increase
their spending significantly in line with their commitments.
“Most importantly,” said Michel, “the EU already gives more than
2 billion per year to infrastructure. This will go up”.
Civil society organizations outline Aid for Trade principles
In a statement published simultaneously with the 20-21 November
WTO Global Aid for Trade Review, forty-six international,
regional and national civil society organizations outlined the
principles they believe should apply to Aid for Trade. For the
signatories, Aid for Trade should:
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be country-driven, involving
local civil society and small and medium-sized businesses in
determining priorities;
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help reduce poverty, generate
employment and emphasize gender equality;
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be provided in forms that do
not create new debt;
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enable recipients to tap more
independent, objective sources of advice and support, rather
than only those employed or endorsed by donor agencies;
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be additional to existing
development aid.
Aid for Trade, say the
signatories, should not:
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demand that recipient nations
implement economic policy changes harmful to people living
in poverty or to the environment;
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require the purchase of
donor-country products or donor-country businesses,
contractors or consultants;
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be given as a “quid pro quo”
in trade negotiations (the signatories accuse donor nations
of having used Aid for Trade as a bargaining chip in seeking
desired outcomes in particular trade agreements);
Further, according to the
signatories, donor countries or donor-driven bodies should not
be leading Aid for Trade monitoring exercise and evaluation
programmes should be transparent, ensure channels for
participation of the populations affected and provide for
accountability of the donor/s. Disbursement channels for
trade-related assistance should be streamlined, says the
statement.
Signatory
organizations: ActionAid International, Africa Development
Interchange Network (Cameroon), Alliance Sud (Switzerland),
Anglican Consultative Council, Asociación de ONGs del Paraguay-
POJOAJU, Association for Women´s Rights in Development, ATTAC
France, Australian Fair Trade and Investment Network, Bank
Information Center (USA), Campagna per la Riforma della Banca
Mondiale (Italy), Center of Concern, Centro de los Derechos del
Campesino (Nicaragua), Church World Service, Christian Aid,
CORDAID (The Netherlands), Fastenopfer (Switzerland), Foro
Ciudadano de Participación por la Justicia y los Derechos
Humanos (Argentina), Haiti Reborn/Quixote Center (USA), IBON
Foundation, Inc. (Philippines), Institute for Agriculture and
Trade Policy, International Gender and Trade Network,
International Presentation Association of the Sisters of the
Presentation, Jubilee North West Coalition (USA), Jubilee
Virginia (USA), Jubilee USA Network, Jubileo Perú, Justice,
Peace & Integrity of Creation Office of the Wheaton Franciscans
(USA), Medical Mission Sisters' Alliance for Justice, Nativity
Catholic Church (USA), NETWORK, A National Catholic Social
Justice Lobby (USA), New Rules for Global Finance Coalition, NGO
Committee on Financing for Development, Norwegian ForUM for
Environment and Development, Oxfam International, Public
Services International, Realizing Rights- The Ethical
Globalization Initiative, Red Mexicana de Acción frente al Libre
Comercio (RMALC), Social Watch, Solidarité (France), Southeast
Asian Council for Food Security and Fair Trade (Malaysia),
Southern Africa Human Rights NGO's Network (Tanzania chapter),
Southern and Eastern Africa Trade Information and Negotiation
Initiative, Third World Network, WIDE Network, World Wide Fund
for Nature (WWF) International, Zenab for Women in Development
(Sudan).
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