WT/COMTD/AFT/W/51  
 
7 May 2014  
(14-2831) Page: 1/4  
Committee on Trade and Development 
Aid for Trade 
   
 
 AID-FOR-TRADE WORK PROGRAMME1 
 
2014-2015 
"REDUCING TRADE COSTS FOR INCL USIVE, SUSTAINABLE GROWTH" 
 
1  OVERVIEW 
1.1.  At the 9th Ministerial Conference held in Bali, Indonesia on 3-6 December 2013, Ministers 
agreed the following Ministerial Decision on Aid for Trade as part of the regular work under the 
General Council: 
"We welcome progress on Aid for Trade and take note of the deliberations and 
outcomes of the 4th Global Review of Aid for Trade held on 8-10 July 2013. We 
recognize the continuing need of Aid for Trade for developing countries, and in 
particular of LDCs. 
"We reaffirm our commitment to Aid for Trade and reiterate the mandate given to the 
Director-General to pursue actions in support of Aid for Trade. The new Aid-for-Trade 
Work Programme should be framed by the post-2015 development agenda." (WT/MIN 
(13)/34) 
1.2.  At the 9th Ministerial Conference, Ministers also adopted a package including an Agreement 
on Trade Facilitation, Ministerial Decisions on Agriculture, Cotton, Development and 
Least-Developed Countries (LDC) issues, and Ministerial Decisions on regular work under the General Council. Aid for Trade is referenced in several of the Ministerial Decisions reached at Bali
2; 
the Agreement on Trade Facilitation also contains  provisions in Section II of the Agreement that 
deal, inter alia , with assistance for capacity building. 
1.3.  The Ministerial Decision on Aid for Trade an d Bali Package add a significant, novel dimension 
to on-going work on Aid for Trade.  The new Work Programme for 2014-2015 is framed by these 
new elements. It is also shaped by past work  programmes (and accompanying Global Reviews) 
and informed by continuing efforts to implement Recommendations of the Aid for Trade Task Force to build supply-side capacity and trade-related infrastructure of developing countries, and in 
particular LDCs, and the mandate on Aid for Trade agreed at the Hong Kong Ministerial Conference 
in 2005.
3 The new Work Programme is titled: "Reducing trade costs for inclusive, sustainable 
growth".   
                                               
1 This Work Programme is issued under the responsi bility of the Chair of the Committee on Trade and 
Development. 
2 Notably the Ministerial Decision on Cotton WT/MIN (13)/41 (and in particular paragraph 10 thereof) 
and the Decision on Operationalization of the Waiver Concerning Preferential Treatment to Services and 
Service Suppliers of Least-Deve loped Countries WT/MIN(13)/43. 
3 Recommendations of the Aid-for-Trade Task Force (WT/AFT/1); 2008 Aid-for-Trade Roadmap 
(WT/COMTD/AFT/W/6); Annotated 2009 Aid-for-Trade Roadmap (WT/COMTD/AFT/W/11/Rev.1); Aid-for-Trade 
Work Programme 2010-11 (WT/COMTD/AFT/W/16); Aid-for-Trade Work Programme 2012-13 (WT/COMTD/AFT/W/30); and Ministerial Declaration, 6
th Ministerial Conference (WT/MIN(05)/DEC). WT/COMTD/AFT/W/51 
 
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  2  VALUE ADDED BY THE AID-FOR-TRADE INITIATIVE 
2.1.  The Hong Kong Ministerial Declaration of December 2005 states that: "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. Aid for Trade cannot be a substitute for the 
development benefits that will result from a successful conclusion to the DDA, particularly on market access. However, it can be a valuable complement to the DDA".   
2.2.  Implementation and operationalization of  Aid for Trade lies in the hands of developing 
countries and their development partners. The purpose of the WTO-led Aid-for-Trade Initiative is to add value to these implementation and operat ionalization activities through the following 
functions, inter alia ,: 
 Promoting dialogue on Aid-for-Trade i ssues between the trade and development 
communities; 
 Monitoring and evaluation of Aid-for-Trade flows, mainstreaming actions (at national and 
regional level), implementation activities (with a particular focus on their regional 
dimension), and results achieved;  
 Advocacy in support of the mobilization of  additional, predictable, sustainable and 
effective Aid-for-Trade resources, the mainst reaming of trade in national and regional 
development policy and the implementation of national and regional Aid-for-Trade 
strategies;
 4 
 Outreach activities on Aid-for-Trade issues  with different stakeholders (including 
multilateral development banks (MDBs), the United Nations, inter-governmental 
organizations, regional economic commissions, the private sector, academia and civil society); 
 Providing a forum for discussion on Aid-for-Trade issues through formal Aid-for-Trade 
(AfT) sessions of the Committee on Trade an d Development (CTD), through periodic 
thematic workshops, and the organization of a 5
th Global Review of Aid for Trade; and 
 Reporting to the General Council on implementation of these functions.   
 
3  WORK PROGRAMME - AREAS OF FOCUS 
3.1.  The organizing theme of the new Work Programme is "Reducing trade costs for inclusive, 
sustainable growth". Trade costs em erged as a central theme of the 4th Global Review of Aid for 
Trade, and accompanying research on connecting developing countries to international trade through value chains. Putting trade costs at the heart of the new Work Programme speaks to 
implementation of the Bali Package (together with  existing WTO agreements), on-going work on 
connecting developing countries (and in particular LDCs) to value chains and places it in the context of the emerging post-2015 development ag enda, and associated goals.  Furthermore, the 
focus on trade costs resonates with the Aid-for-Trade Initiative mandate to build the supply-side 
capacity and trade-related infrastructure that developing countries, and in particular LDCs, need to assist them to implement and benefit from WTO Agreements and more broadly to expand their 
trade.
5 
3.2.  Particular emphasis is placed in this Work Programme on making the case, in outreach and 
monitoring activities, for implementation of the Bali Package, and the Agreement on Trade 
Facilitation in particular. Actions taken here will be complementary to those on-going in relevant 
WTO Committees and subsidiary bodies, including the Preparatory Committee on Trade 
Facilitation.   
                                               
4 Advocacy on resource mobilization should refl ect the views of Members with regard to their 
development and financing needs, in particular those of LDCs.  
5 Recommendations of the Aid-fo r-Trade Task Force (WT/AFT/1). WT/COMTD/AFT/W/51 
 
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  3.3.  The 4th Global Review of Aid for Trade, and its accompanying monitoring exercise, harvested 
significant new perspectives on the difficulties developing country suppliers, notably Small and Medium Sized Enterprises (SMEs) in LDCs, face in connecting to international trade through value chains.  Private sector engagement was a notable fe ature of the monitoring exercise, together with 
the 4
th Global Review and should be further developed in the new Work Programme. A growing 
body of research is developing in this area, driv en in part by on-going joint work by OECD and 
WTO on the Trade in Value Added database, and other research such as that by ITC on SME 
competitiveness.   
3.4.  Scope exists for learning lessons from research in the area of connecting to value chains and 
from related Aid-for-Trade private sector development activities. For example, good practice could be harvested at sectoral level (e.g. on the agrifood sector and sustainable value chains), further 
work could be undertaken on how Aid for Trade connects SMEs to value chains, and how Aid for 
Trade can be used to create a business and investment climate conducive to catalysing other forms of financing, notably those from the privat e sector (both domestic and foreign). The growing 
experience and expertise of South-South partners in this area is a further dimension worthy of 
consideration, building on initial research work undertaken with the Confederation of Indian Industry.
6   
3.5.  Another focus area is that of infrastructure development. This area has consistently been 
highlighted by developing country governments as a major constraint in their responses on Aid-for-Trade priorities. Following the guiding theme of reducing trade co sts, work on this issue will 
examine the interplay of hard and soft trade-rela ted infrastructure on trade costs, harvesting 
insights from existing and on-going research. A further area of interest here is the services' 
dimension to infrastructure development (e.g. logi stics). Spending on trade-related infrastructure 
is typically the largest item in Aid-for-Trade ex penditure as captured in reporting to the OECD 
Creditor Reporting System, and an area where South-South partners are actively engaged in 
complementary activities.  
3.6.  Regional approaches to Aid for Trade have  been a continuing theme of the Aid-for-Trade 
Initiative. It is an area where significant progress has been registered, notably on mobilizing funds.  
Approximately, US$7 billion was spent on multi- country and regional programmes in 2012 – up 
from an average of US$2.3 billion in 2002-2005. Re search suggests that regional approaches are 
an area where the Aid-for-Trade Initiative has clear value-added. Further work in this area will be 
undertaken, notably in connection with the themes of connecting to value chains, infrastructure 
development and creating a business and investment climate conducive to catalysing other forms of financing.  Efforts here should seek to promote regional Aid-for-Trade strategies (e.g. for Arab 
States, Caribbean, Central Asia, Central Africa , COMESA, ECOWAS, the Pacific and SADC), to 
harvest best practice from successful experiences (e.g. from MDBs, and other donors' experience with regional Aid-for-Trade programmes) and to  work with regional organizations and their 
development partners to apply these lessons in future Aid-for-Trade support (e.g. including actions 
to boost trade in Africa and other regions). 
3.7.  Throughout the Work Programme period, negotiations will continue on the post-2015 
development agenda. The process will culminate in a Summit in September 2015, at which the 
post-2015 development agenda and accompanying goals will be agreed. The Ministerial Decision 
on Aid for Trade agreed at the Bali Ministerial Conference states that the new Aid-for-Trade Work Programme should be framed by the post-2015 de velopment agenda. As such, a "watching brief" 
will need to be kept on the emerging agenda throughout the work programme period. 
4  WORK PROGRAMME ACTIVITIES 4.1.  The centrepiece of the 2014-2015 Work Programme is the 5
th Global Review of Aid for Trade: 
"Reducing trade costs for inclusive, sustainable gr owth". Following the biennial scheduling of past 
Reviews, the 5th Global Review is tentatively programmed for mid-2015. Results of the 5th Global 
                                               
6 India-Africa: South-South Trade and Investment for Development  
http://www.wto.org/english/tratop_e/devel_e/a4t_e/global_review13prog_e/india_africa_report.pdf  WT/COMTD/AFT/W/51 
 
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  Review would then be considered in the Aid-for-Trade session of the CTD, reported to the General 
Council and onwards to the WTO's 10th Ministerial Conference7.   
4.2.  The Global Review would be underpinned by a monitoring and evaluation exercise.  In this 
function, the OECD has proven an effective partne r – as confirmed by an independent evaluation 
of the OECD's contribution to the Initiative.  Successive monitoring and evaluation exercises have 
also seen engagement with an increasing number of other collaborating partners, the 4th Global 
Review being notable in this regard. Efforts will be made in the new Work Programme to engage a 
broad range of partners in the monitoring and evaluation exercise underpinning the 5th Global 
Review of Aid for Trade, notably as regards engagement with the private sector, specifically SMEs in developing countries, and in particular LDCs. Monitoring and evaluation activities contribute to the development effectiveness of Aid for Trade.
8 
4.3.  Monitoring and evaluation also provides the analytical foundation for advocacy and outreach 
functions; functions that are exercised through the WTO's coherence mandate with the IMF and World Bank and outreach activities with a dive rse range of other Aid-for-Trade stakeholders 
(including, but not limited to, MDBs, regional economic commissions, the United Nations, 
intergovernmental organizations (such as the World Customs Organization), the G-20, the private sector, academia and civil society).   
4.4.  Outreach and advocacy efforts will conti nue throughout the Work Programme period. These 
efforts will focus on making the case for mainstre aming trade in national and regional development 
policy, implementation of national and regional Ai d-for-Trade strategies, and for the mobilization of 
additional, predictable, sustainable and effective Aid-for-Trade resources. Advocacy on resource 
mobilization should reflect the views of Members with regard to their development and financing 
needs, in particular those of LDCs
9. The Enhanced Integrated Framework for LDCs10 is germane in 
this context.  Additional efforts will also be made to work with South-South partners to capture 
their activities and results and to engage the private sector. 
4.5.  A series of Aid-for-Trade sessions of the Committee on Trade and Development shall be 
scheduled by the CTD Chairperson. These meet ings will provide a forum for Members and 
Observers to discuss Aid-for-Trade issues. Following established practice, the meetings will be 
organized around the following headings: resource  mobilization and implementation activities; 
mainstreaming; regional dimension; private sector ; and monitoring and evaluation of development 
effectiveness. Members are particularly encouraged to use their Trade Policy Reviews and the 
results of Diagnostic Trade Integration Studies, a vehicle for ensuring trade mainstreaming in 
LDCs, (and related approaches in non-LDCs) as the basis for discussion of mainstreaming 
activities.   
4.6.  An accompanying series of thematic work shops will also be organized back-to-back with 
formal CTD Aid-for-Trade sessions. Topics proposed for workshops are as follows: Aid for Trade and SME Competitiveness; Aid for Trade, Infrastructure and Services; Aid for Trade and the post-
2015 development agenda; and Results of the 2014/ 15 Monitoring and Evaluation Exercise.   
 
 
__________  
                                               
7 The Aid-for-Trade Initiati ve was launched at the 6th Ministerial Conference in Hong Kong in December 
2005.  
8 The Global Partnership for Effective Development Co-operation and Busan Pa rtnership Agreement on 
Effective Development Co-operation pertain.  
9 For LDCs, of relevance are, inter alia , paragraph 8 of WT/COMTD/AFT/M/30 (Note of the Thirtieth 
Session of the Committee on Trade and Development on Aid for Trade, 9 April 2014) and paragraph 3 of WTO/COMTD/LDC/11/Rev.1 (WTO Work Programme for the Least-Developed Countries Adopted by the 
Sub-Committee on Least Developed Countries on 28 June 2013).  
10 The EIF has also been mentioned in the context of  implementing the Ninth Ministerial Decisions on 
Cotton, Services and Trade Facilitation.