WTO Members Discuss Aid for Trade, Technical Assistance, LDC Priorities in Development Week

WTO members examined Aid for Trade flows, the participation of least-developed countries (LDCs) in global trade and capacity-building for developing economies during WTO Development Week held from 20 to 22 April.

· WTO Development Week Convened: World Trade Organization members met from 20–22 April to review Aid for Trade flows, development priorities, LDC participation in global trade and technical assistance.

Aid for Trade

· Aid-for-Trade Disbursements Rose: According to the Organisation for Economic Co-operation and Development, Aid-for-Trade disbursements increased 2% to US$51 billion in 2024, with Africa receiving US$19 billion, the largest regional share.

· Trade Policy Support Fastest Growing Segment: Funding for trade policy and regulations grew 17% in 2024, despite accounting for a modest 3% of total disbursements.

· Concerns Over Funding Cuts: OECD projections indicate official development assistance (ODA) could fall by up to 23% in 2025, with Aid for Trade financing to LDCs potentially declining 26%.

· 10th Global Review Preparations Underway: The WTO’s 10th Global Review of Aid for Trade will take place 29–30 October 2026, marking the initiative’s 20th anniversary.

· Private Sector Partnerships Highlighted: Discussions emphasized leveraging private capital for trade infrastructure, with examples including the World Bank and the European Union’s Global Gateway initiative.

Trade and Development Discussions

· Technical Assistance Plans Reviewed: WTO members discussed 2026 implementation plans for technical assistance and training led by the WTO’s Institute for Training and Technical Cooperation (ITTC).

· China-Africa Industrial Cooperation Highlighted: Members reviewed China’s communication on investment support for Africa’s industrialization, focusing on manufacturing, jobs and supply chains.

· Special and Differential Treatment Mechanism Discussed: Members examined progress on operationalizing the Monitoring Mechanism on Special and Differential Treatment.

· Regional Trade Notifications Considered: Members reviewed notifications related to preferential trade arrangements and regional trade agreements, including an early-harvest arrangement between China and Congo.

· Committee Leadership Elected: Elmer José Germán Gonzalo Schialer Salcedo was elected Chair of the Committee on Trade and Development, while Ib Petersen was re-elected Chair of the Sub-Committee on LDCs.

Least Developed Countries (LDC) Priorities

· Doha Programme Midterm Review Preparations Discussed: Members received updates on preparations for the 2027 global midterm review of the Doha Programme of Action for LDCs.

· Enhanced Integrated Framework Progress Reviewed: Members discussed the third phase of the Enhanced Integrated Framework (EIF), backed by an initial US$37.9 million pledge.

· South-South Dialogue Focused on WTO Reform: The 8th South-South Dialogue explored evolving LDC priorities, WTO reform and trade development challenges.

· Subsidies Flagged as Major Constraint: Participants noted that among 9,000 policy measures affecting LDC exports since 2017, subsidies have had the strongest trade-restrictive impact.

· Capacity Building and Digital Trade Opportunities Highlighted: Discussions covered automation, compliance with standards, intellectual property, AI-driven services, business process outsourcing and online freelancing opportunities for LDCs.

· E-Commerce Moratorium and WTO Reform Priorities Raised: Business representatives highlighted advancing WTO reform and a multilateral solution on customs duties for electronic transmissions as key priorities.

Overall Takeaways

· Focus on Trade as Development Tool: Members underscored trade’s role in growth, poverty reduction and resilience, especially for vulnerable and least-developed economies.

· Support for LDC Integration Strengthened: Discussions emphasized financing, technical assistance, private investment and digital trade opportunities to deepen LDC participation in global trade.

· Next Development Week Scheduled: The next WTO Development Week will take place 6–9 July 2026.

[ABS News Service/28.04.2026]

Aid for Trade

At the Aid-for-Trade session of the Committee on Trade and Development held on 20 April, the Organisation for Economic Co-operation and Development (OECD) reported that Aid-for-Trade disbursements increased by 2 per cent from 2023 to reach USD 51 billion in 2024. Out of this total, USD 19 billion was disbursed to Africa, which remains the largest regional recipient.

While total disbursements to support trade policy and regulations were a "modest" 3 per cent, it was the fastest growing sector in 2024, increasing by 17 per cent from 2023. According to OECD statistics, official development assistance (ODA) to eligible developing economies is projected to fall by up to 23 per cent in 2025, with expected cuts of up to 26 per cent in Aid for Trade financing to LDCs. The OECD indicates that Aid for Trade disbursements, which account for around one-fifth of total ODA, may be affected by the overall decline in ODA.

The Chair of the Committee on Trade and Development, Ambassador Mzukisi Qobo of South Africa, updated members on preparations for the 10th Global Review of Aid for Trade to take place on 29 and 30 October at the WTO, coinciding with the 20th anniversary of the Aid-for-Trade initiative. The event will bring together ministers, heads of international organizations, policymakers and practitioners to assess the impact of Aid for Trade on economies' participation in trade, examine challenges and explore how strengthened partnerships can support trade development in a changing geopolitical context. As in previous editions, a joint OECD-WTO report will inform discussions by examining the impact of 20 years of Aid for Trade on economies' exports, drawing on impact stories from WTO members. The Chair invited members to submit stories by 30 April and session requests for the Global Review by 29 May.

Sharing experiences of cooperation, Paraguay and Chinese Taipei highlighted how support had led to upgrades in family-owned micro-workshops operating in the informal sector. "By replacing time-intensive design processes with advanced 3D design technology, USD 30,000 was mobilized in direct orders for sewing textiles workshops from regional and global markets," Paraguay's Minister of Trade and Industry, Marco Riquelme, said. The representative of Chinese Taipei noted the importance of joint project design and implementation tailored to local contexts.

At an experience-sharing session held the same day, members explored ways of leveraging private sector partnerships to maximize the impact of trade development interventions. The mobilization of USD 54 billion in guarantees by the European Union's Global Gateway between 2018 and 2022 was referenced. The Global Gateway is a new European strategy to boost smart, clean and secure links in digital, energy and transport sectors, while also strengthening health, education and research systems across the world.

The World Bank noted that the private sector has been playing an increasingly important role in building capital-intensive trade infrastructure, such as ports, transport corridors, logistics hubs and border facilities. However, private financing can only make a difference when accompanied by trade policies that help speed up trade flows, it added.

The Caribbean Infrastructure Fund stressed the importance of addressing structural constraints in the Caribbean, highlighting the need for regulatory coherence and making projects attractive for private investment, particularly given limited sovereign guarantees. Emphasizing the catalytic role public capital plays in attracting private investment as well as the need for strong local capital markets, Altree Capital highlighted the importance of engaging private investors early in the investment process.

Trade and development

At the Committee on Trade and Development meeting held on 21 April, the WTO's Institute for Training and Technical Cooperation (ITTC) outlined implementation plans for technical assistance and training in 2026. It also gave an overview of the evaluation of technical assistance for the period 1995 to 2021. Members expressed their appreciation for the ITTC's innovative approach to sustaining the effectiveness of technical assistance despite reduced financial resources and welcomed its regular reporting in this area.

The Committee also considered a communication from China summarizing insights from the High-Level Meeting on Accelerating Africa's Industrialization: China's Investment, which was held on 25 March on the margins of the WTO 14th Ministerial Conference. The communication highlights the role of Chinese investment in supporting job creation, strengthening local manufacturing capacity, and deepening cooperation in infrastructure and supply chains to advance Africa's industrialization.

Members discussed the operationalization of the Monitoring Mechanism on Special and Differential Treatment at a dedicated session held the same day. They took note of several notifications regarding changes to existing preferential trade arrangements (PTAs) and new regional trade agreements (RTAs) in the respective dedicated sessions held on 21 April. These included a notification from China and Congo on both countries' "Early-Harvest Arrangement" under the Agreement on Economic Partnership for Shared Development, a first step allowing selected tariff reductions and trade measures to take effect before the full agreement.

Members elected Ambassador Elmer José Germán Gonzalo Schialer Salcedo of Peru as Chair of the Committee on Trade and Development and re-elected Ambassador Ib Petersen of Denmark as Chair of the Sub-Committee on LDCs.

LDC priorities

At the meeting of the WTO Sub-Committee on LDCs held on 22 April, members received an update from the United Nations Office of the High Representative for the Least Developed Countries, Landlocked Developing Countries, and Small Island Developing States (UNOHRLLS) on preparations for the global midterm review on the implementation of the Doha Programme of Action for LDCs (DPoA), scheduled to take place in Doha, Qatar, from 25 to 27 March 2027. The WTO cooperates with UNOHRLLS on implementing the trade elements of the DPoA.

The WTO's LDC Group Coordinator, Cherno Marenah of The Gambia, reported on the 8th South-South Dialogue on LDCs and Development held on 6 March as part of China's LDCs and Accessions Programme. The Dialogue looked at WTO reform, including ways to revitalize the WTO's trade and development work and evolving LDC trade priorities.

Members exchanged views on the third phase of the Enhanced Integrated Framework (EIF), which was announced at a high-level event held in Yaoundé on the margins of MC14, with an initial pledge announcement of USD 37.9 million. Members acknowledged the work undertaken in the run-up to MC14 on a draft EIF Declaration. The LDC Group expressed the hope that members continue engagement in the discussions on the Declaration, including at the WTO General Council scheduled for 6 and 7 May, as part of the LDC package which was presented for ministers' consideration at MC14. The Enhanced Integrated Framework (EIF) is a multilateral partnership dedicated exclusively to assisting least developed countries (LDCs) in using trade as an engine for growth, sustainable development and poverty reduction.

During the experience-sharing session held on 22 April, representatives from businesses and academia examined the challenges and opportunities for LDCs' participation in trade in the evolving trade landscape. According to Global Trade Alert, among the 9,000 policy measures affecting LDCs' exports introduced by WTO members since 2017, subsidies have had the most significant trade-restrictive impact. The Global Trade Alert (GTA) is an independent platform that monitors policy changes affecting global trade and investment, providing data and analyses to help stakeholders make informed decisions for better globalization management.

It was also noted that Switzerland's "Swiss Program on Capacities for Trade Policies" provided developing economies, including LDCs, with tailored technical assistance aimed at facilitating access to information on the latest policy changes of their trading partners, thereby helping them better participate in the WTO's regular work.

Advancing WTO reform and finding a multilateral solution to the e-commerce moratorium on customs duties on electronic transmissions were considered among key priorities for business. Participants also stressed that success factors for LDC participation in global supply chains include investment in automation, strengthened design capabilities to enable local in-house product design without reliance on foreign designers, and compliance with international standards.

The International Growth Centre provided insights into emerging digital trade opportunities for LDCs, including business process outsourcing and online freelancing. The International Growth Centre is a global research centre working with policymakers in developing countries to promote inclusive and sustainable growth through research and policy engagement.

The discussions also highlighted the role of intellectual property in supporting value addition, the impact of artificial intelligence on digitally delivered services in LDCs and steps taken by LDC businesses as some of the LDC economies prepare for graduation from LDC status.

The next Development Week is scheduled to take place from 6 to 9 July 2026.