WT/COMTD/AFT/W/81  
 
21 February 2020  
(20-1365) Page: 1/6 
Committee on Trade and Development  
Aid for Trade    
 
 AID-FOR-TRADE WORK P ROGRAMME1  
2020 -2021  
 
EMPOWERING CONNECTED , SUSTAINABLE TRADE  
OVERVIEW  
1.1.  The Aid -for-Trade  Work Programme for 2020 -2021 is themed "Empowering Connected, 
Sustainable Trade". The focus of the biennial work programme is the opportunities that digital 
connectivity and sustainability offer for economic and export diversification – and how Aid for Tra de 
can help empower different economic actors to realize these opportunities. The focal point of the 
Work Programme is the 2021 Aid for Trade  Global Review - the eighth such Review since 2007.  
1.2.  The objective of the Aid -for-Trade Initiative, as stated in its  mandate (WT/AFT/1), is to help 
developing countries and in particular least developed countries (LDCs), to build the supply -side 
capacity and trade -related infrastructure that they need to implement and benefit from WTO 
Agreements and to expand their trad e. Economic and export diversification is integral to trade 
expansion and is a critical trade and development policy objective as highlighted by the 
2019 monitoring and evaluation  (M&E)  exercise. The new biennial work programme seeks to build 
on policy ins ights from the last two work programmes: "Promoting Connectivity" (2016 -17) and 
"Economic Diversification and Empowerment" (2018 -2019).2 
1.3.  The context in which the policy objectives of trade expansion and economic diversification are 
being pursued has change d significantly since the Aid-for-Trade Initiative was launched in 2005 at 
the Hong Kong Ministerial Conference. Against a background of dynamic change in the global 
economy and on -going efforts to achieve the 2030 Agenda, the 2020 -21 Aid -for-Trade Work 
Programme seeks to examine the opportunities that digital connectivity and sustainable 
development offer for economic and export diversification – and how Aid for Trade can help empower 
these outcomes.  While the context has changed, the rationale for Aid fo r Trade remains relevant, 
in particular as regards the supply -side capacity and trade -related infrastructure constraints that 
hamper participation in the global economy – and in particular the involvement of LDCs.  
1.4.  In addition to formal meetings, a series o f thematic workshops are also planned under the 
auspices of the Committee on Trade and Development (CTD). Outreach events with  Aid-for-Trade 
(AfT) stakeholders will also be held. The focus of these events is to advance work on supply -side 
capacity and trad e-related infrastructure issues in a coherent manner taking full account, inter alia , 
of the gender perspective and of the goal of sustainable development. Taken together and 
individually, these activities will continue to support implementation of the 203 0 Agenda for 
Sustainable Development and relevant Programmes of Action.3  
 
1 This Work Programme is issued under the responsibility of the Chair of the Committee on Trade and 
Development.  
2 WT/COMTD/AFT/W/60  and WT/COMTD/AFT/W/75.  
3 Including, inter alia , the Vienna Programme of Action for Landlocked Developing  Countries 
(http://unohrlls.org/about -lldcs/programme -of-action/ ), the Samoa Pathway 
(http://www.sids2014.org/samoapathway ) and the Istanbul Programme of Action ( http://unohrlls.org/about -
ldcs/istanbul -programme -of-action/ ).  WT/COMTD/AFT/W/81  
 
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  WORK PROGRAMME - AREAS OF FOCUS  
1.5.  The 2019 joint OECD -WTO Aid-for-Trade M&E exercise highlights the continued centrality of 
economic diversification as a trade and development policy objective. Encouraging progress in 
diversification was reported at the 2019 Global Review, with M&E respondents citing particular 
advances i n agricultural export diversification – see Figure 1 below.   
Figure 1: Sectors where respondents reported most progress  
 
Source:  OECD/WTO AfT M&E exercise (2019) . 
 
1.6.  Responses to the M&E exercise received from partners countries and donors also reported 
Aid for Trade supporting economic diversification outcomes. Trade facilitation was identified by 
partner country respondents as the main category of Aid  for Trade in which support received was 
impactful for economic diversification.  Donors also s cored trade facilitation highly and placed special 
emphasis on economic diversification in the agriculture sector. The 2019 M&E exercise also 
highlighted that economic diversification offers a pathway for empowerment of women, youth and 
micro, small and me dium enterprises (MSMEs ) – and that Aid for Trade can support this process. 
One action foreseen in the new work programme is building on these insights further through a 
workshop examining "Maximizing the economic diversification impact of Aid for Trade".  
Figure 2: Top five most impactful forms of Aid-for-Trade support for economic 
diversification: partner and donor perspectives  
 
 
WT/COMTD/AFT/W/81  
 
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Source:  OECD/WTO AfT M&E exercise (2019) . 
 
1.7.  Progress reported in economic diversification is nevertheless uneven, and frequently starts 
from a low base (most LDCs export in fewer than 100 HS codes and 18 services categories). A 
combination of factors continues to constrain economic and export divers ification, with limited 
manufacturing capacity and MSME s access to finance cited most frequently by LDC and landlocked 
M&E respondents.   
1.8.  Furthermore, the context in which economic diversification is being pursued is a dynamic one. 
Downside risks dampen th e World Bank's 2020 outlook for global economic growth.4 WTO analysis 
suggests import -restrictive measures continue at historically high levels and points to unfavourable 
trends that could worsen the picture further.5  Near-term trade policy uncertainty co exists with 
medium to long -term technological change driven by the digital economy and the systemic challenge 
of moving to sustainable development models. All of which makes for a challenging environment for 
LDCs to pursue economic diversification and prod uctive capacity -building strategies, for graduating 
LDCs to ensure smooth transition and other developing countries to pursue inclusive, sustainable 
growth strategies. A further action foreseen in this regard is a workshop examining the "Implications 
of LD C graduation for Aid for Trade".  
1.9.  The 2017 Aid for Trade at a Glance publication underlined that digital networks are an integral 
element of the physical infrastructure of trade, accessible and affordable connections are 
indispensable for trade connectivity  and recommended , considering the digital divide as a market 
access issue. The report also found AfT stakeholders (donors, South-South partners, beneficiary 
governments and regional organizations) face important challenges in integrating a digital dimensio n 
into their trade and development strategies, notably as regards promoting economic and export 
diversification.   
1.10.   Against this background, a question to be addressed in the 2020 -21 Work Programme is how 
to ensure that digital connectivity supports economi c and export diversification objectives, in both 
goods and services trade. Identifying opportunities that digital connectivity and ecommerce policies 
offer for economic and export diversification – and how Aid for Trade can help empower different 
actors to  realize these opportunities. Here a crucial link exists with training and skills needed to 
enable youth, women and MSMEs to participate in international trade. One action foreseen in the 
new work programme is a workshop examining "Digital connectivity and  economic diversification ". 
1.11.   The transition to sustainable development lies at the heart of the 2030 Agenda . The 2019  M&E 
exercise highlighted the views of AfT stakeholders on the contribution that Aid for Trade can make 
 
4 Global Economic Prospects: Slow Growth, Policy Challenges, World Bank Group Available  at: 
https://www.worldbank.org/en/publication/global -economic -prospects   
5 Overview of Developments in the International Trading Environment, Annual Report by the 
Director -General WT/TPR/OV/22 Available at:  
https://www.wto.org/english/news_e/news19_e/dgra_12dec19_e.htm  
WT/COMTD/AFT/W/81  
 
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  to individual sustainable developmen t goals, with those related to industry, innovation and 
infrastructure as well as decent work and economic growth and poverty eradication ranking highly 
(see Table 1 below).  
1.12.   Where the 2020 -21 Work Programme will seek to add value is through analysis as to  how 
these industrialization and economic growth objectives interact with those on sustainability and 
responsible production, approaches which can be collectively termed "green growth". A further point 
for consideration is the nexus between green growth an d digital connectivity, how these trends 
promote inclusive growth, in particular for LDCs – and how Aid for Trade can empower different 
actors to realize these opportunities.  
1.13.   Understanding the opportunities that green growth and digital connectivity offer s to meet 
multiple targets in the 2030 Agenda whilst promoting economic and export diversification will be a 
particular focus of the M&E exercise underpinning the 2021 Global Review. The 2019 M&E exercise 
highlighted action being taken by partner countries  (including LDCs), and regional organizations on 
green value chains, renewable energy and green growth strategies more generally. Environmental 
considerations were also cited as a driver of changes in AfT programming by donors. These 
references were gather ed incidentally as part of an M&E exercise whose focus was placed elsewhere.  
A dedicated focus would yield further insights into the actions that Members and regional 
organizations are taking and planning for the 2021 Global Review.  
1.14.   An area of focus in t he Work Programme's consideration of sustainable development and 
green growth policies is the circular economy.6 The 2020 World Development Report argues that 
global value chains have the potential to turn waste into valuable resources.7 One study cited in the 
report by the United Nations University conservatively estimated the value of recoverable materials 
in 2019 's e-waste to be USD 55 billion, or more than the 2016 gross domestic product of most 
countries .8  Understanding the opportunities that the circular economy may offer for value chain 
integration , in particular for LDCs,  and Aid for Trade can support the ne cessary changes in 
technology, product design and trade policy necessary to make production and consumption more 
sustainable while opening new trade opportunities. A further action foreseen here is a workshop 
examining "Circular economy, economic diversifi cation and Aid for Trade".  
 
6 Circular economy approaches require that supply chains work in reverse to collect and  process 
products at end -of-life so they may be recycled and used again.  
7 Trading for Development in the Age of Global Value Chains , World Development Report, World Bank 
Group. Available at: https://www.worldbank.org/en/publication/wdr2020   
8 UNU (United Nations University). 2018. “E -Waste Rises 8% by Weight in 2 Years as Incomes Rise, 
Prices Fall ”. Available at:  https://unu.edu/media -relations/releases/ewaste -rises-8-percent -by -weight -in-2-
years.html .  WT/COMTD/AFT/W/81  
 
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  Table 1:  Partner and Donor  Perspective s on Aid for Trade and the 2030 Agenda  
   M&E Responses  
from Partner countries  
(88)  M&E Responses  
from Donors  
(36)  
  Which Sustainable Development 
Goal(s)  can Aid for Trade can help 
to achieve?  Number of 
time s identified  percentage 
share  Number of 
times identified  percentage 
share  
1 No poverty  60 68%  31 89%  
2 Zero hunger  50 57%  18 51%  
3 Good health and well -being  38 43%  4 11%  
4 Quality education  44 50%  7 20%  
5 Gender equality  55 63%  29 83%  
6 Clean water and sanitation  29 33%  5 14%  
7 Affordable and clean energy  44 50%  14 40%  
8 Decent work and economic growth  73 83%  31 89%  
9 Industry, innovation and 
infrastructure  80 91%  30 86%  
10 Reduce inequalities  53 60%  26 74%  
11 Sustainable cities and communities  22 25%  7 20%  
12 Responsible consumption and 
production  49 56%  16 46%  
13 Climate action  27 31%  12 34%  
14 Life below water  26 30%  7 20%  
15 Life on land  22 25%  6 17%  
16 Peace, justice and strong 
institutions  36 41%  6 17%  
17 Partnership for the goals  43 49%  25 71%  
Source:  Aid-for-Trade responses to the OECD/WTO M&E exercise (2019)  published in 
WT/COMTD/AFT/W/79/Rev.1 . 
 
WORK PROGRAMME ACTIV ITIES  
1.15.   Outreach and advocacy efforts will continue to promote mainstreaming trade by developing 
countries and their development partners, implementation of national and regional AfT strategies, 
and for the mobilization of additional, predictable, sustainable and effective AfT resources. Advocacy 
on resource mobilization should reflect the views of developing countries with regard to their 
development and financing needs, in particular those of LDCs notably with regard to infrastructure 
financing  and productive cap acity building . The Enhanced Integrated Framework (EIF) for LDCs is 
germane in this context.  
1.16.   Outreach efforts will also continue to  strengthen  South -South cooperation among developing 
countries and implement projects through  triangular trade schemes of co operation . Noteworthy here 
is the global engagement of key South -South partners as highlighted by respondents in the 2019 
M&E exercise.   
1.17.   A series of formal AfT sessions of the CTD will be scheduled by the CTD Chairperson. These 
meetings provide a forum to  discuss AfT issues. Thematic workshops and other events will also be 
organized back -to-back with the formal CTD AfT sessions. These workshops will provide an 
opportunity to explore the themes identified in section two of this document outlining areas of focus.  
1.18.   Topics proposed for workshops include: Maximizing the economic diversification impact of 
Aid for Trade; Digita l connectivity and economic diversification; Circular economy, economic 
diversification and Aid for Trade; Results of the 2020 -21 M&E exercise and Implications of LDC 
graduation for Aid for Trade. Members are encouraged to make suggestions of speakers and topics 
to be discussed at these events.  WT/COMTD/AFT/W/81  
 
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  1.19.   The centrepiece of the Work Programme will be the Aid for Trade  Global Review in 2021. It 
will be underpinned by an M&E exercise. Efforts will be made to engage a broad range of partners 
in the M&E exercise, and to use innovative methods and approaches, whilst ensuring continued 
broad engagement and participation. Results of the Global Review will be reported to the CTD and 
the General Council.  
 
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