OECD Policy Dialogue with non-Members on Aid for Trade: from Policy to Practice

A joint event organised by
OECD Development Co-operation, Development Centre, and Trade Directorates
in partnership with the Gulf Organisation for Industrial Consulting (GOIC)

The Ritz-Carlton Hotel
Doha, Qatar, 6-7 November 2006 

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About

The aim of this OECD Policy Dialogue with non-Members on the topic of Aid for Trade is to bring together a wide range of stakeholders from developing and developed countries to share experiences and information on how best to support developing countries' trade expansion and make it an engine of economic growth and poverty reduction.

The objective is to provide developing countries' participants, and especially those who have not so far been part of the debate, the opportunity to ensure that their experiences in using donors’ support to increase the benefits from the WTO Agreements contribute to the operationalisation of the December 2005 Hong Kong Aid for Trade Initiative. In addition, this Dialogue will provide an opportunity to seek feedback and input from partner countries on the proposed OECD’s 2007/08 work on trade and development issues. Finally, it will offer an opportunity to assess the contribution this events and possible future regional gatherings to the OECD 2007/08 planned work on delivering aid for trade effectively.

Background

International trade, when coupled with domestic reform and sound macroeconomic policies, can be a powerful engine in promoting sustained economic growth, employment opportunities and poverty reduction. This has been demonstrated in a number of developing countries that have achieved impressive economic growth rates and substantial reductions in poverty. However, some developing countries are experiencing difficulties in capturing the benefits of more open trade. In these countries, governments, institutions and enterprises often lack the capacity, e.g. information, policies, procedures, institutions and/or infrastructure, to compete effectively in increasingly competitive global markets and take full advantage of the opportunities that are provided through international trade.

The agreement to put developing countries’ priorities at the centre of the 2001 Doha Development Agenda (DDA) has highlighted the challenge of how to effectively address development concerns in the multilateral trading system, and in particular how to help developing countries overcome their trade-related institutional, human resource and supply capacity needs. The 2005 Hong Kong Ministerial Declaration agreed that Aid for Trade should aim to help developing countries to build the supply-side capacity and trade-related infrastructure that they need to assist them to implement and benefit from WTO agreements and more broadly to expand their trade. Aid for Trade cannot be a substitute for the development benefits that will result from a successful conclusion to the DDA, particularly on market access. However, it can be a valuable complement to the DDA.

The July 2006 Recommendations of the WTO Task Force have provided a framework to operationalise Aid for Trade, which highlights the importance of the Paris Declaration on Aid Effectiveness. The OECD is explicitly invited to provide input in making Aid for Trade an effective instrument in assisting developing countries to increase exports of goods and services, to integrate into the multilateral trading system, and to benefit from liberalised trade and increased market access.

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