Aid for Trade Fi Fifth th Meetin ing of Trad ade Minis isters rs of Land Landlocked De Develo loping Coun untrie ries The Theme: : Harn arnessin ing the he Trad Trade Pot otentia ial of of the he LLDCs to o Imple lement the he Vi Vienna Prog rogramme of of Act ctio ion for for LLDCs and and 203 2030 Age genda for for Sust Sustain inable Development 23-24 June 2016 – Geneva, Switzerland Michael Roberts Head, Aid-for-Trade Unit 1 WTO Development Division
Outline • Aid for Trade – Mandate and Scope • LLDCs: Impacts of high trade costs Aid-for-Trade Case Stories • Promoting Connectivity • Conclusions 2
Aid for Trade: 6th WTO Ministerial Conference Mandate: “Aid for Trade should aim to help developing countries, particularly LDCs, 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”. 3
Aid-for-Trade Mainstreaming of trade – in Trade-related policy and national and regional regulations. development frameworks; donor policies. Trade-related infrastructure. Support for regional trade integration. Building productive Trade Facilitation. capacity. Strengthening private sector Trade-related adjustment. engagement. Monitoring and evaluation. Other trade-related needs. 4
Since 2007, the 5 Global Reviews of Aid for Trade have maintained commitment on the mainstreaming of trade in development policies. 5
Landlocked Developing Countries (LLDCs) (32) FYR of The Former Yugoslav Rep. of WTO Members 25 In process of WTO accession 5 LDCs 16
LLDC respondents to AfT questionnaire (16) Afric ica Asia ia Lat Latin in Amer eric ica Europe Botswana Afghanistan Paraguay Burkina Faso Bhutan Central African Lao DPR Republic Chad Mongolia Lesotho Nepal Mali Rwanda Swaziland Uganda Zimbabwe
LLDC responses to AfT Questionnaire Most important sources of trade costs for the export of merchandise goods 14 7
LLDC responses to AfT Questionnaire Most important sources of trade costs for the export of services % 90 80 13 70 60 50 9 40 7 7 30 5 6 20 3 3 10 0
LLDC responses to AfT Questionnaire How have your trade costs evolved over the past 5 years? % 5 5 3 1 1 1
LLDC responses to AfT Questionnaire Action taken by governments to reduce trade costs % 15 14 13 9 6
LLDCs – Average time to import/export 2014 Time to Import (days) Time to Export (days) 70 60 50 40 30 20 10 0 LLDCs Africa LLDCs Asia LLDCs Europe LLDCs Latin America Source: World Bank Development Indicators
LLDCs – Average cost to Import/Export 2014 (per container) Cost to Import Cost to Export US$ 5,000 4,500 4,000 3,500 3,000 2,500 2,000 1,500 1,000 500 0 LLDCs Africa LLDCs Asia LLDCs Europe LLDCs Latin America Source: World Bank Development Indicators
LLDCs – Average cost to Export 2014 (per container) LLDCs Africa US$ 7,000 6,000 5,000 Cost to Export 4,000 3,000 Average cost to export (Africa) 2,000 1,000 Average cost to export (Global) 0
LLDC – Responses to AfT questionnaire Impact of TFA implementation on evolution of trade costs 3 Between 0-10% reduction More than 10% reduction 4 4 No capacity to estimate 5 Unsure % 0 5 10 15 20 25 30 35
LLDCs Aid-for-Trade Case Stories 16
LLDCs Aid-for-Trade Case Stories 17
Promoting Connectivity Theme of the 2016-2017 Aid- for-Trade Work Programme and Sixth Global Review Focus on: • Trade Facilitation. • E-commerce. • Infrastructure, services and investment climate reforms. • TFA implementation assistance. 18
Conclusions • Research highlighting the impact of high trade costs on economic growth and development of LLDCs. • Trade costs – natural / man-made. • Actions being undertaken by LLDCs and supported by development partners yielding results. • Theme to be further progressed in Sixth Global Review. • More needs to be done. 19
Thank you For more info formatio ion vis visit it: www.aid id4tra rade.org rg and the the WTO TO websit ite: www.wto.org 20
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