Aid for Trade Initiative

The Aid for Trade Initiative helps developing countries, especially least-developed countries, acquire the capacity needed to participate effectively in international trade. Launched by the WTO in 2005, it seeks to address supply-side and infrastructure constraints that prevent countries from using market-access opportunities and benefiting from trade liberalisation.

Core purpose

Lower tariffs or improved market access alone cannot expand exports when countries lack transport links, productive capacity, customs capability or knowledge of trade rules. Aid for Trade therefore connects trade policy with development assistance.

• It supports implementation of WTO agreements and integration into the rules-based trading system.
• It helps countries diversify production and exports, reduce trade costs and connect with regional and global markets.
• It gives priority to developing countries, particularly least-developed countries, whose capacity constraints are most severe.

Areas of support

Assistance is directed towards constraints identified by recipient countries in their development strategies.

• Trade policy and regulation support includes institutional capacity, customs administration and trade facilitation.
• Economic infrastructure support includes transport, energy and communications required for commerce.
• Building productive capacity supports sectors and enterprises that produce tradeable goods and services.
• Trade-related adjustment assistance helps countries manage costs arising from changes in trade regimes.

How the initiative operates

The WTO primarily provides a platform for coordination, advocacy and monitoring; it is not itself the main development-finance agency.

• Funding and technical assistance are provided through bilateral donors, multilateral development institutions and regional organisations.
• The initiative promotes country ownership and coordination among trade, finance and development institutions.
• The Global Review of Aid for Trade assesses priorities, implementation and outcomes, improving transparency and accountability.