WTO Touts Aid for Trade

“We see increasing protectionism, the return of industrial policy, and the shaping of a narrative about trade that casts it as anti-people and anti-planet.”

“We see signs of fragmentation in the trade data, with like-minded countries beginning to trade more with each other than with others that are not so like-minded," she commented.

“Just as poor countries left behind during the recent wave of globalization look to benefit from the open, predictable multilateral trading system, they are being told that globalization is over, and presumably that they should find another way to fend for themselves.”

“Aid for Trade remains a vital instrument to help them do just that,” the DG said.

In chapter 2 of the report released on June 26, it is claimed that total AFT disbursements are to the tune of $632 billion, comprising $369 billion from bilateral donors and $263 billion from multilateral donors, since 2006.

However, it would have been useful if a break-up of the bilateral donors, and whether it includes China’s huge BRI investments and loans were included in the report, said an analyst, who preferred not to be identified

Also, there appears to be no mention of the South-South cooperation, without which it is difficult to measure the actual impact of the AFT, the analyst said.

Aid for Trade in Action: Supporting the transition to clean energy

28 June 2024

Key figures:

• Developing and least-developed countries currently receive less than 20% of global clean energy investments
• 3 key segments of the clean energy value chain where developing economies could integrate more fully into global trade: minerals and metals, machinery and equipment manufacturing, and services. The Democratic Republic of the Congo (DRC) accounts for 74 per cent of global cobalt production (key for batteries); minerals account for over 30 per cent of annual export value in 23 African economies. Malaysia and Viet Nam have positioned themselves as important nodes in the solar PV value chain, and since 2017, components such as solar wafers, cells and chips account for around 10 per cent and 5 per cent respectively of their trade surpluses.
• Approximately US$ 60 billion, or 30% of all Aid for Trade commitments with climate objectives between 2011 and 2021, was channelled into the energy sector

Link: https://www.wto.org/english/news_e/news24_e/envir_28jun24_e.htm