WT/COMTD /AFT/W/75 
7 May 2018 
(18-2794) Page: 1/4 
Committee on Trade and Development  
Aid for Trade    
 
AID-FOR-TRADE WORK PROGRAMME1  
2018 -2019  
 
SUPPORTING ECONOMIC DIVERSIFICATION AND EMPOWERMENT FOR INCLUS IVE, SUSTAINABLE 
DEVELOPMENT THROUGH AID FOR TRADE  
1  OVERVIEW  
1.1.  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".  Ministers at MC6 invited the 
Director -General to constitute a Task Force to draw up recommendations on how to operationalize 
Aid for Trade.  The Task Force reported in July 2006.2 
The Aid -for-Trade Wor k Programme for 2018 -2019 will further develop themes  that emerged 1.2.  
during the Aid for Trade  Global Review 2017 through a focus on "Supporting economic  
diversification and  empowerment  for inclusive , sustainable development  through Aid for Trade".  
The new Work Programme will seek to further develop analysis on how trade can contribute 1.3.  
to economic diversification and empowerment , with a focus on  eliminating extreme poverty , 
particularly through the effective participation of women and youth, and how A id for Trade can 
contribute to that objective by addressi ng supply -side capacity and trade -related infrastructure 
constraints , including for Micro, Small and M edium -sized Enterprises (MSMEs)  notably for those 
MSMEs in rural areas . Other issues to be developed during the Work Programme  will include 
industrialization  and structural transformation , digital connectivity  and skills , as well as  sustainable 
development and access to energy.  
The focal point of the Work Programme will be t he Aid for Trade  Global Review in 1.4.  
mid-2019 - the seventh that will have been undertaken since 2007. The Review will be based on a 
monitoring and evaluation (M&E) exercise .3 
In addition to formal meetings, a series of thematic workshops are also planned under  the 1.5.  
auspices of the Committee on Trade and Development (CTD). Taken together and individually, 
these activities will continue to support implementation of the 2030 Agenda for Sustainable 
Developmen t and relevant Programmes of Action .4 Aid for Trade should be rendered in a coherent 
manner taking full account, inter alia , of the gender perspective and of the overall goal of 
sustainable development.  
                                                      
1 This Work Programme is issued under the responsibility of the Chair of the Committee on Trade and 
Development.  
2 Recommendations of the Task Force on Aid for Trade, WT/AFT/1, 27 July 2006.  
3 Focusing on Aid -for-Trade financing of trade policy and regulati on, trade development, trade -related 
infrastructure, building productive capacity, trade -related adjustment and other trade -related needs.  
4 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/ ). We further note that the 2019 United Nations High -level Political Forum 
on Sustainable Development  is titled: " Empower ing people and ensuring inclusiveness and equality ". WT/COMTD/AFT/W/75  
 
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  The objective of the Aid -for-Trade Initiative, as stated in its mandate, is to help develop ing 1.6.  
countries and in particular least developed countries, to build the supply -side capacity and 
trade -related infrastructure that they need to implement and benefit from WTO agreements and to 
expand their trade.  These are objectives that are aimed toward s poverty eradication which is on e 
of the building blocks  of sustainable development   One conclusion emerging from the "Aid for 
Trade at a Glance 2017" publication is that to  reduce poverty, the costs of trade connectivity need 
to be addressed in order to enable the poor to participate in the global  economy.5 All Members 
wish to see Aid for Trade contribute to positive achievements in poverty eradication . 
2  WORK PROGRAMME - AREAS OF FOCUS   
More than half the world 's population is under the age of 30. Between 2012 and 2020 almost 2.1.  
1.1 billion young job -seekers are expected to enter the employment  market.6 Many of these 
job-seekers will enter the workforce in least developed countries ( LDCs) whose  population is 
projected to increase 39% between 2015 and 2030. In Sub-Saharan Africa, 60% of the population 
is under the age of 24 and by 2030, the continent’s working -age population is set to i ncrease by 
two-thirds, from 370  million adults to over 600 million.7 
Meeting the demand for work and employment from young peopl e entering the labour force 2.2.  
is neither a new challenge, no r one that governments have found easy to address. Historically, 
young people have been disproportionately more affected by unemployment than their adult 
counterparts.  Unemployment among young peopl e has exhibited an upward trend over the last 
25 years; it declined in many countries in the early 2000s but then proceeded to rise again during 
the Great Recession . The youth unemployment rate is almost three times higher than is the case 
for adults.8  
Addressing the challenge of youth employment was a theme highlighted across various 2.3.  
thematic sessions at the Aid for Trade  Global Review 2017, including those on industrialization, 
digital economy, skills, and the  Sustainable Development Goals  (SDGs ). Demographic trends in 
many low -income countries add to the urgency of addressing the issue of jobs and work.  
Young women are disproportionately affected by youth unemployment.9 This reflects a 2.4.  
broader challenge related to women's economic  empowerment. Acro ss the global economy, 
traditionally, women’s unemployment rates have also been higher than those of men in most 
countries. In addition to the risk of discrimination in the workplace, women face an array of 
obstacles in terms of access to t raining, skills and financing.  
The digital divide comprises a significant female  dimension. This message emerges strongly 2.5.  
at the Global Review and in the accomp anying "Aid for Trade at a Glance " publication. 
International Telecommunication Union (ITU)  data on internet use  indicates a very clear divide  
between men and women . In the vast majority of countries, the proportion of men using the 
internet is higher than the proportion of women. Women are less likely to be connected to the 
internet or to have the skills and expert ise to use that connectivity to engage in e -commerce. One 
indicator of these issues is the finding that the exporter productivity premium of women -owned 
firms tends to be roughly half the size of comparable men -owned firms.10  Research by the World 
Bank and  WTO also highlight ed that trade costs tend to fall excessively heavily on female traders, 
who are often in the informal sector.  
Research on high -growth firms in developing countries highlight that they tend to play a 2.6.  
disproportionately large role in job c reation. Such firms tend to be small i n size (less than ten  
employees) and  young in existence (i.e. less than ten  years old). High -growth firms exist acro ss all 
                                                      
5 See chapter 12, "Aid for Inclusive Trade and Poverty Reduction" in Aid for Trade at a Glance 2017  
6 Work for Human Development,  Human Development Report 2015,  United Nations Development 
Programme , http://hdr.undp.org/sites/default/files/2015_human_development_report.pdf . 
7 The World Popu lation Prospects: 2015 Revision, United Nations Department of Economic and Soci al 
Affairs, http://www.un.org/en/development/desa/publications/world -population -prospects -2015-revision.html . 
8 "World employment and social ou tlook: Trends 201 5", International Labour Office  2018. 
9 ILO 2018 op. cit.  
10 "Closing the Small -Business and Gender Gap  to Make Trade More Inclusive" , International Trade 
Centre in "Aid for Trade at a Glance 2017: Promoting Trade, Inclusiveness and Connectivit y for Sustainable 
Development".  WT/COMTD/AFT/W/75  
 
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  sectors, both services and manufacturing.11 Targeting factors that support growth of these firms, 
including their internationalization, may help address both employment and also supply -side 
capacity constraints. This insight again feeds into a broader narra tive on MSMEs. On this topic , 
there is an opportunity to update and extend the work undertaken as part of the 2014 -2015 
Work Programme12 on the topic of " Aid for Trade and SME competitiveness : Connecting 
Developing Country SMEs to Global Value Chains" . 
Another factor that emerged strongly from the Aid for Trade  Global Review 2017 is the 2.7.  
challenge of achieving ex port diversification , the transformation and promoting of rural economy,  
and supply -side capacity growth at a time of unprecedented speed of technological change in the 
global economy, driven by digital connectivity and growth in e -commerce. The World Trade Report 
2017 discusses the challenge of "Trade, Technology and Jobs" in depth. Skills are an area which it 
identifies as critical. One finding is that trade and technology both increase the demand for skills in 
advanced economies and lead to upskilling in developing economies as trade supports the spread 
of new technologies and different  production practices.  
The skills issue emerge d strongly from both the Global Review and the "Aid for Trade a t a 2.8.  
Glance " publication ; it also feeds back into the question of youth work and jobs . Digital skills are 
one of the foundational elements for parti cipation in e -commerce , and are essential for the 
successful implementation of national digital policies13 and industrialization . Various examples 
were given at the Global Review of training on digital skills being offered by national governments, 
developme nt partners and the private sector. One example cited was a joint ITU and  International 
Labour Organization  (ILO) project to equip 5 million young people with  information and 
communications technology  (ICT) through the "Digital Skills for Decent Jobs for Youth" campaign. 
Furthermore, a growing number of e-trade readiness assessments are becoming available, 
including for LDCs.  Assessments for Liberia, Nepal and  Samoa were conducted in the final quarter 
of 201 7. The role of governments and other stakeholders in p olicy-making  to promote digital 
connectivity and e -commerce were also discussed.  
A further challenge highlighted by the Aid for Trade  Global Review 2017 is that of pursuing 2.9.  
structural transformation and  export diversification. Sustainability intersects with supply -side 
capacity constraints that constrain growth. Notable here is ensuring access to affordable, reliable, 
sustainable and modern energy for all . Access to electricity and the importance of building physical 
infrastructure was highlighted as a major constraint in relation to digital connectivity , trade 
connectivity more generally  and structural transformation . Access to electricity  has consistently 
been referenced as a constraint  that relates  to building resilient infrastructure, promoting 
inclusive , sustainable industrialization and fostering innovation . 
On this topic , there is an opportunity to update and extend past work on sustainable 2.10.   
development and green economy  by expanding analysis to examine initiatives address ing the 
power generation and energy access gap that inhibits the development of productive capacity in 
some regions and economies .14  
3  REVIE W OF AID -FOR-TRADE ACHIEVEMENTS  
The 2016 -2017 Work P rogramme incl uded provision for a review of Aid-for-Trade ( AfT) 3.1.  
achievements. It noted that: "A review document will be drafted and presented to the CTD Aid for 
Trade, and the discussions on which will then be reported to the General Council. It will also be fed 
into t he G-20 deliberations as part of the ongoing monitoring of the G -20's commitment on Aid for 
Trade. The review document will be prepared jointly with the Organisation for Economic 
Co-operation and Development ( OECD ) – WTO's core partner in the monitoring an d evaluation of 
                                                      
11 "Global Investment Competitiveness Report 2017/2018", World Bank Group . 
12 Workshop on Aid for Trade and SME competitiveness, 9 October 2014, 
https://www.wto.org/english/news_e/news14_e/aid_10oct14_e.htm . 
13 "Harnessing E -commerce for Sustainable Development", UNCTAD in "Aid for Trade at a Glance 2017" 
op. cit.  
14 Workshop on Aid for Trade, Sustainable Development and Gr een Economy, 29 Feb ruary 2012. Further 
details: https://www.wto.org/english/tratop_e/devel_e/a4t_e/wkshop_feb12_e/wkshop_feb12_e.htm . WT/COMTD/AFT/W/75  
 
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  the Aid -for-Trade Initiative".15 Accordingly,  preliminary work was undertaken to help in the  review 
of AfT achievements. A joint working paper was prepared by the OECD and WTO.16  
Some Members and a Group of Members have offered substantive comments  on how to 3.2.  
strengthen and improve the monitoring methodology , and the scope of the proposed review of AfT 
achievements at past meetings of the CTD and at the Aid for Trade  Global Review 2017 . Some 
Members and a Group of Members have also  offered suggestions and raised concerns about  how 
the Initiative should be structured in future .17 Against this background, the Chair of the CTD will 
consult with interested Members on the parameters  for the proposed review of AfT achievements  
to be undert aken in the 2018 -2019 Work Programme  and the organization of dedicated informal 
open-ended CTD Aid for Trade sessions . 
4  WORK PROGRAMME ACTIV ITIES  
A series of formal AfT sessions of the CTD  will be scheduled by the CTD Chairperson. These 4.1.  
meetings provide a forum to discuss AfT issues, including suggestions made during the elaboration 
of this Work Programme and other AfT issues of interest to Members. 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.  
Topics proposed  for workshops  include: Industriali zation, e conomic diversification and 4.2.  
structural transformation; Transforma tion and promoting rural economy; Connectivity and skills 
development , including policies related to  digital connectivity and e -commerce ; MSMEs and access 
to finance; Results of the M &E exercise 2018 -2019; 18 Economic diversification and empowerment 
with a focus on Youth and Women , (including  in rural areas ); Aid for Trade , Sustainable 
Development  and the Green Economy, with a particular focus on building resilient trade -related 
infrast ructure, access to energy and power generation. Members are encouraged to make  
suggestions of speakers and topics to be discussed at these events . The regional dimension  of Aid 
for Trade should also be considered  in these events . 
Outreach and advocacy efforts will continue to promote mainstreaming trade by developing 4.3.  
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. The Enhanced Inte grated Framework (EIF) for LDCs is germane in this 
context. Outreach efforts will also continue towards South -South partners, to discuss South -South 
and triangular trade and investment activities, in partic ular with LDCs.  
The centrepiece of the Work Progra mme will be the Aid for Trade  Global Review  in mid -2019. 4.4.  
It will be underpinned by a n M&E exercise. The M&E exercise and accompanying Global Review will 
be informed by discussion  arising from the review of AfT achievements. Efforts will be made to 
engage a  broad range of partners in the M&E exercise, notably as regards engagement with the 
private sector, specifically SMEs in developing countries, and in particular LDCs. A further focus 
will be to use innovative methods and approaches, whilst ensuring contin ued broad engagement 
and participation in the M&E exercise. Results of the Global Review would then be transmitted to 
the CTD Aid for Trade, reported to the General Council and onwards to the WTO Ministeri al 
Conference.  
__________  
                                                      
15 "Promoting Connectivity, Aid -for-Trade  Work Programme 2016 -2017", WT/COMTD/AFT/W/60 . 
16 "Aid for Trade 10 years on: Keeping it Effective". http://www.oecd.org/trade/OECD -WTO-AFT-10-
years -on.pdf . 
17 Proposals  and recommendatio ns can be found in CTD Summary Reports  including : 
WT/COMTD/AFT/M/40, WT/COMTD/AFT/M/41 and WT/COMTD/AFT/M/42 /Rev.1  and the Summary Report of the 
Global Review of Aid for Trade 2017: WT/COMTD/AFT/W/74.  
18 Focusing on Aid -for-Trade financing of trade policy a nd regulation, trade development, trade -related 
infrastructure, building productive capacity, trade -related adjustment and other trade -related needs .