WT/COMTD/AFT/W/49  
 
25 April 2014  
(14-2529)  Page: 1/25  
Committee on Trade and Development 
Aid for Trade    
 
COMMUNICATION FROM THE ORGANISATION FOR  
ECONOMIC CO-OPERATION AND DEVELOPMENT (OECD) 
The following communication, dated 11 April 2014, received from the Organisation for 
Economic Co-operation and Development (OECD), is being circulated to delegations for 
information. 
_______________ 
  
AID FOR TRADE IN 2012:  
INCREASING FLOWS, HARDENING TERMS WT/COMTD/AFT/W/49 
 
- 2 - 
 
   
1  INTRODUCTION1 
1.1.  The economic crisis has put pressure on donor budgets and while the overall volume of 
Official Development Assistance (ODA) has not been significantly affected, the terms of assistance 
have become harder and more resources are being committed to middle-income countries.2 Most 
donors continue to provide ODA exclusively in the form of grants with loans representing only 30% of total gross ODA. But several donors are increasingly extending loans.
3  
1.2.  Aid for Trade has been particularly affected  by these overarching changes in the provision of 
aid and data for 2012 paints a mixed picture of ongoing efforts to mobilise more and better Aid for Trade. Overall commitments continued to expand in 2012, with an increase of US$9 billion or 21% to US$54 billion dominated by economic infrastructure and building productive capacity. But less 
positively, Aid for Trade policy and regulations has stagnated in recent years and reached its 
lowest share of Aid for Trade since monitoring began. Most of the increases in 2012 benefited Africa but the share of resources committed to the least developed countries (LDCs) declined. As 
with total aid, a hardening of the terms of Aid for Trade is also evident. While traditionally there 
was an even split between loans and grants, in 2011 and 2012 loans have assumed greater 
prominence such that in 2012 almost 65% of Aid for Trade is provided as loans. A majority of the 
Aid for Trade committed to the LDCs however remains in the form of grants.  
1.3.  This note provides a comprehensive overview of Aid-for-Trade flows in 2012. It provides 
details of ODA commitments and disbursements an d trade-related Other Official Flows (OOF). 
Using data extracted from the OECD Creditor Reporting System (CRS), it examines the broad 
trends, the recipients and providers of assistance, the financial terms of assistance, and the 
outlook for Aid for Trade.
4 
2  AID FOR TRADE CONTINUES TO GROW STRONGLY… 
2.1.  Following a slight decline in 2011, Aid-for-Trade flows resumed its previous growth 
trajectory. Commitments increased by 21% to almost US$54 billion.5 Overall, Aid for Trade has 
more than doubled since the baseline (2002-05 aver age). Aid to economic infrastructure expanded 
by 31% to almost US$31 billion or 57% of the tota l (a slightly higher share than in previous 
years). This reflects increasing support for road building particularly in Africa, as well as electrical generation and transmission. Aid to building productive capacity continued to expand and was up 10% to reach US$1.5 billion. These resources have  helped support agricultural development, 
investments in banking and finance institutions and private sector development programmes. 
Despite the continuing increases in Aid for trade facilitation, Aid for Trade policy and regulations has not grown since 2009 and has stagnated at US$1.3 billion. 
                                               
1 For comments or questions on this paper, cont act William Hynes at the Development Co-operation 
Directorate at OECD William.hynes@oecd.org  and Anne.Gordon@oecd.org .  
2 Grants or loans to countries and territories on the DAC List of ODA Recipients (developing countries) 
and to multilateral agencies which are: (a) undertaken by  the official sector; (b) with promotion of economic 
development and welfare as the main objective; (c) at concessional financial terms (if a loan, having a grant element of at least 25 %). In addition to financial flows, technical co-operation is included in aid. Grants, loans and credits for military purposes are excluded. Transf er payments to private in dividuals (e.g. pensions, 
reparations or insurance payouts)  are in general not counted. 
3 With the world-wide low interest  rate environment donor countries can borrow at very low interest 
rates, and then re-lend to developing countries at higher  rates and still meet the grant element test of ODA if 
loan maturities and grace periods are sufficiently long (OECD, 2013; Hynes and Scott, 2013). 
4 The Aid-for-Trade data can be accessed and the methodology reviewed here: 
http://www.oecd.org/trade/aft/aid-for-tradestatisticalqueries.htm  
5 A commitment is a firm obligation, expressed in writing and backed by the necessary funds, 
undertaken by an official donor to provide specified assistance to a recipient country or a multilateral organisation. Bilateral commitments are recorded in the fu ll amount of expected transfer, irrespective of the 
time required for the completion of disbursements. Commitments to multilateral organisations are reported as 
the sum of (i) any disbursements in the year reported  on which have not previously been notified as 
commitments and (ii) expected disbursements in the following year.  WT/COMTD/AFT/W/49 
 
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  Figure 1 - Aid for Trade by category, commitments 
25.833.741.947.4
44.653.8
0102030405060
2002-05
avg.2006-08
avg.2009 2010 2011 2012US$ billion (2012 constant)
Trade Policy & Regulations
Economic Infrastructure
Building Productive Capacity
 
Source: OECD-DAC, Creditor Reporting System (CRS)  
 WT/COMTD/AFT/W/49 
 
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3  …ASSUMING A HIGHER SHARE OF SECTOR ALLOCABLE ODA… 
3.1.  Aid-for-Trade flows have expanded at a faster rate than overall total sector-allocable aid (the 
sum of aid that can be assigned to specific sectors or multi-sector activities). The strong growth in 
ODA abated in 2009, followed by a decline in 2011 and recovery in 2012. Since 2006-08 the share 
of Aid for Trade has grown from 31.6% to almost 40% in 2012. Aid for Trade also drove the increase in sector allocable ODA in 2012 with a 20% growth rate compared to 9% for total ODA.  
Figure 2 - Total sector allocable ODA and Aid for Trade (AfT) 
Total sector 
allocable 
(left axis)
AfT share (%)non-AfT sectors
(left axis)
020406080100
0306090120150
2002-05
avg.2006-08
avg.2009 2010 2011 2012Share (%) US$ billion (2012 constant)
 
Source: OECD-DAC, Creditor Reporting System (CRS)  
 WT/COMTD/AFT/W/49 
 
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4  …RESULTING IN HIGHER DISBURSEMENTS… 
4.1.  Previous years’ increases in commitments have solidified into an 82% escalation of 
Aid-for-Trade disbursements since 2006, building to  US$39 billion in 2012: a confirmation of donor 
engagement in the Aid-for-Trade Initiative.6 Over US$213 billion has been disbursed since 2006 
with 52% to economic infrastructure, 45% to build ing productive capacity and 3% to trade policy 
and regulations. A slowing up of the growth rate of disbursements is seen in 2012 at 6% from an 
average of over 10% during 2010 and 2011. 
Figure 3 - Aid-for-Trade disbursements 
24.230.534.136.939.1
0102030405060
2006-08 avg. 2009 2010 2011 2012US$ billion (2012 constant)
Trade Policy & Regulations Economic Infrastructure
Building Productive Capacity Trade-related Adjustment 
Source: OECD-DAC, Creditor Reporting System (CRS)  
                                               
6 Disbursements are the release of funds to or the pu rchase of goods or servic es for a recipient; by 
extension, the amount thus spent. Disbursements record the actual international transfer of financial 
resources, or of goods or services valued at the cost to the donor. In the case of activities carried out in donor 
countries, such as training , administration or public awareness prog rammes, disbursement is taken to have 
occurred when the funds have be en transferred to the service provider or the recipient. WT/COMTD/AFT/W/49 
 
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5  …LARGELY BENEFITING AFRICA… 
5.1.  The scaling up of Aid-for-Trade commitments since 2006 has largely benefited Africa. The 
African share of Aid for Trade was 30% during 2002-05  but this has risen to 40% in 2012. In total 
US$21.3 billion was provided in 2012, almost 180%  higher than the baseline and 55% higher 
compared to 2011 with most of this increase concentrated in transportation (mainly road but also rail), electrical transmission and agriculture. The largest recipients included Kenya (US$2.3 billion), 
Morocco (US$2.3 billion), Egypt (US$2.1 billion) and Ethiopia (US$2 billion).  
Figure 4 - Aid-for-Trade commitments by region 
0510152025
Africa America Asia Europe Oceania(US$ billion 2012 constant)
2002-05 avg. 2006-08 avg. 2009 2010 2011 2012
 
Source: OECD-DAC, Creditor Reporting System (CRS)  
 
5.2.  The African Development Bank recently completed formulation of a long-term strategic 
planning programme for Africa’s regional infrastructure (2012-40). The Programme for 
Infrastructure Development in Africa (PIDA), wi ll help address the infrastructure deficit that 
severely hampers Africa’s competitiveness in the world market and is one factor driving increased 
aid for infrastructure in Africa in 2012. Increased Aid for Trade has contributed to improving roads 
between Mombasa, Nairobi and Addis Ababa and el ectrical distribution between Ethiopia and 
Kenya. In total Kenya received almost US$760 million and Ethiopia US$638 million. Aid for Trade 
increases in 2012 particularly affected flows to Northern Africa. Morocco received commitments of 
US$2.3 billion including over US$400 million for high-speed rail.  
5.3.  Support to the Americas and Asia also improved moderately on 2011 levels. However the 
share of Asia in total Aid for Trade has fluctuated and while it received almost half of total Aid for 
Trade in 2002-05, this share has declined over time to 33% in 2012. The Americas receive a small 
but increasing share, rising gradually to 8% in 2012. In 2011 and 2012, commitments to Europe 
increased mostly due to increased Aid for Trade in Turkey and Serbia and increasing loans to the 
region amounting to almost US$5 billion, provided  for the most part by the European Union. WT/COMTD/AFT/W/49 
 
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6  …AND REGIONAL AND GLOBAL PROGRAMMES… 
6.1.  Regional Aid for Trade can help developing countries spur regional economic integration, 
enhance competiveness, and plug into regional production networks. These production networks 
have been important drivers of international trade and foreign direct investment and are 
increasingly figuring prominently in the developm ent strategies of developing economies (OECD, 
2014). Regional Aid-for-Trade programmes are, in general, more cost-efficient than single country 
programmes in supporting efforts to reduce border thickness and infrastructure deficits 
(OECD/WTO, 2013).  
6.2.  The tripling of regional Aid for Trade to US$7 billion in 2012 since the baseline testifies to the 
rising awareness among partners and donors about the potential impact of regional Aid-for-Trade 
programmes in achieving trade and development goals. Regional programmes are being funded 
significantly in Sub-Saharan Africa which is the largest regional recipient with almost US$2.2 billion, up 18% on 2011 and 260% since the baseline. These resources finance cross-
border road projects, private sector development funds for the region and basket funds for trade 
facilitation, agricultural development and support for fair-trade producers.  
Figure 5 - Regional and global programme commitments 
050010001500200025003000
Africa America Asia Europe Oceania(US$ million 2012 constant)
2002‐05 avg. 2006‐08 avg. 2009 2010 2011 2012
 
Source: OECD-DAC, Creditor Reporting System (CRS)  WT/COMTD/AFT/W/49 
 
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7  …WITH 75% OF AID FOR TRADE COMMITTED TO TRANSPORT, ENERGY AND AGRICULTURE… 
7.1.  At sector level, aid for transportation an d energy reached their highest ever level. A number 
of large projects, mostly financed through loans in middle-income countries, make up a significant 
part of the total. Annex 1 provides details of the largest Aid-for-Trade projects in 2012. Almost US$17 billion was committed to transport, over half of which for road transportation. Buys, 
Deichmann and Wheeler (2006) and Shepherd and Wilson (2008) have found that road 
improvements can have substantial positive effe cts on trade volumes. There were a number of 
large road projects in almost all regions. Japan provided a US$270 million loan to the Philippines for the Central Luzon Link Expressway Project. The European Investment Bank provided loans for 
a number of road projects in Eastern Europe and Central Asia.  
7.2.  Almost 30% of aid to transport, or over US$4.5 billion was committed to Rail. This included a 
US$1.5 billion loan from Japan for the construction of the Delhi Metro. Japan is also partly 
financing the Ho Chi Minh City Urban Railway Co nstruction in Viet Nam with a US$0.5 billion. A 
number of donors including France and Japan are providing loans for the Cairo metro line with over US$825 million committed in 2012. Over 80% of  transport projects are funded with loans.  
7.3.  The lack of electricity can dramatically affect production costs and reduce export 
competitiveness and, thus, trade performance. But the cost of unreliable electricity can be even greater. Unreliable electricity not only requires the purchase of generators but can damage machineries and equipment used in production due to fluctuation in power intensities (Hallaert et 
al, 2011). Several donors are involved in strength ening electrical transmission and distribution. 
Japan committed over US$700 million to India an d the World Bank provided loans of over 
US$500 million to Viet Nam. Renewable energy proj ects also remain a priority for developing 
countries. For example, Germany provided a loan to  India, for co-financing the construction of a 
450 Mega Watt hydro-electric power plant. Germany al so provided credit lines for the promotion of 
renewable energies and energy efficiency in Turkey. 
7.4.  Aid for Agricultural Development included a US$110 million loan from the World Bank to 
Ethiopia to promote basic services. The United States provided grants of US$340 million as part of the Global Food Security Initiative across the continent to sustain the productivity of the agricultural sector through investments that foster increasing returns to land, labour, and capital 
providing improvements in technology and management practices, expanded access to markets 
and credit, increased organizational and market efficiency, and restoration and protection of 
resiliency in production and livelihood systems.  
8  …BUT SUPPORT FOR TRADE POLICY AND REGULATIONS HAS STAGNATED… 
8.1.  Aid for Trade policy and planning includes support to ministries and departments responsible 
for trade policy, trade-related legislation and regulatory reforms, policy analysis and 
implementation of multilateral trade agreements, e.g.  technical barriers to trade (TBT) and 
sanitary and phyto-sanitary (SPS) measures. It also covers costs associated with mainstreaming trade in national development strategies ( e.g. poverty reduction strategy papers). Support to this 
area was stable between 2010 and 2012 at US$1.3 bi llion. But the share in overall Aid for Trade 
reached its lowest point in 2012 at just 2.3%, down from 3% during 2002-05. In addition, Aid for 
Trade-related adjustment, which though small had been increasing in 2010 and 2011, collapsed to less than US$380,000 in 2012. 
8.2.  Aid for trade facilitation has been gaining an  ever greater proportion of Aid for Trade policy 
and regulations from about 10% during 2002-05 to  over 35% in 2012. Aid for trade facilitation 
increased five-fold since the baseline, and by almost 30% since 2011, to reach US$466 million in 
2012. Over the last ten years more than US$2.5 billi on in ODA was committed to trade facilitation 
and since 2006 US$1.4 billion disbursed. This assistance has been provided in a mixture of grants from bilateral donors and both grants and concessional loans from multilateral institutions. Annual flows have grown strongly in recent years, mo stly benefiting African countries. Aid for trade 
facilitation financed E-customs and a national single window for customs modernization in 
Viet Nam, a standards for market access programme in Kenya, trade and transportation facilitation WT/COMTD/AFT/W/49 
 
- 9 - 
 
  programmes in Ethiopia, Central Africa and Côte d’Ivoire as well as improved SPS handling in the 
Mekong Sub-Region. 
Figure 6 – Aid-for-Trade commitments for policy and regulations 
794.11099.31491.1
1431.1
1256.51341.6
020040060080010001200140016001800
2002-05 avg. 2006-08 avg. 2009 2010 2011 2012US$ million (2012 constant)
Trade Policy & Admin. Management
Trade Facilitation
Regional Trade Agreements
Multilateral Trade Negotiations
Trade Education & Training
 
Source: OECD-DAC, Creditor  Reporting System (CRS) 
 
 
 WT/COMTD/AFT/W/49 
 
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9  …LDCS ARE NOT KEEPING PACE… 
9.1.  The Aid-for-Trade Initiative seeks to mobilize resources to address the trade-related 
constraints identified by developing and particul arly the Least Developed Countries (LDCs). Aid for 
Trade is particularly critical for LDCs whose trade remains highly focused on a narrow range of 
products. On average, LDCs depend on only three products for more than 70% of their export receipts, leaving them highly susceptible to adverse price movements and falls in demand 
(OECD/WTO, 2011). After many years of increasing aid to LDCs, commitments declined by 2% 
from 2011 to 2012 to US$13 billion. At the same time commitments increased by 35% to lower middle-income countries (LMICs) and to upper middle-income countries (UMICs) by 42%. Middle-income countries now receive US$31 billion or 58% of total Aid for Trade. The share for 
LDCs, which averaged 30% during 2009 to 2011, has fallen to 24% in 2012. 
9.2.  While the majority of support provided to LDCs is in grant form at 54%, albeit with a much 
reduced proportion than previous years (averaged 63% between 2008 and 2011), in 
middle-income countries, most of the Aid for Trade is provided as loans. For instance, 82% of 
Aid-for-Trade flows committed to LMICs are loans and 78% for UMICs. During the baseline period only 60% of Aid for Trade to LMICs and 55% to UM ICs were loans, indicating that the loan share 
has expanded recently. 
Figure 7 – Aid-for-Trade commitments by income group 
05101520253035
2002-05
avg.2006-08
avg.2009 2010 2011 2012US$ billion (2012 constant)
Low-income countries
of which: Least-developed
Middle-income countries
 
Source: OECD-DAC, Creditor Reporting System (CRS)  
 WT/COMTD/AFT/W/49 
 
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10  …AND THE TERMS OF ASSISTANCE HAVE HARDENED… 
10.1.  Aid for Trade is part and parcel of regu lar ODA, which is composed of grants and loans 
meeting certain conditions (i.e. transactions that are concessional in character and that convey a 
grant element of at least 25 %). While in the pa st, half of Aid for Trade was committed in grant 
form and half in the form of concessional loans, this distribution has become skewed towards loans in 2012.  
10.2.  While grants declined by 2%, loans incr eased by 38%. In addition, Aid for Trade already 
had a higher loan share relative to total sector allocable ODA and this share has increased for both in recent years such that in 2012, almost 65% of Aid for Trade is committed as loans. This 
compares to less than 40% for total sector allo cable ODA. The share of loans increased for all 
income groups, in particular for middle-income countries. While most infrastructure projects are 
funded with loans and over 70% of total support co mes in the form of loans, less than half (43%) 
of building productive capacity, most Aid for Trad e policy and regulations projects are funded with 
grants and only 21% with loans. The share of loans in total Aid for Trade to middle-income 
countries is almost 80% and this share has been increasing since 2002-05. For low-income countries, the share of loans is much lower and relatively unchanged at 40%. 
Figure 8 – Aid-for-Trade commitments in loans and grants 
010203040
2002-05
avg.2006-08
avg.2009 2010 2011 2012US$ billion (2012 constant)
Grants Loans
 
Source: OECD-DAC, Creditor Reporting System (CRS)  
 WT/COMTD/AFT/W/49 
 
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11  …WITH MIDDLE-INCOME COUNTRIES DOMINATING 
11.1.  Aid for Trade remains concentrated with  just ten recipients receiving 50% of total 
Aid-for-Trade flows in 2012 (four from Africa, four  from Asia and one each from Europe and the 
Americas). This included seven middle-income countries and just two LDCs. As was the case in 
recent years, India remains the largest recipient, followed by Turkey and Viet Nam. As previously 
mentioned, some African countries particularly in northern Africa had increased support in 2012.  
11.2.  Flows to Afghanistan continue to decline as post-war reconstruction efforts diminish. 
Pakistan had increased commitments from the World Bank and the United States, primarily for energy generation and agriculture programmes. Braz il has not received significant amounts of Aid 
for Trade in the past but is, in 2012, among the top ten recipients with infrastructure projects 
funded by France, Japan and the European Union as well as large support for forestry from 
Norway. Annex 3 includes details of Aid for Trade for each individual partner country. 
Figure 9 - Top 10 Aid-for-Trade recipients in 2012 
4.0
3.3
2.6
2.3
2.3
2.1
2.0
1.8
1.6
1.30.0 1.0 2.0 3.0 4.0 5.0
India
Turkey
Viet Nam
Kenya
Morocco
Egypt
Ethiopia
Afghanistan
Pakistan
BrazilCommitments, US$ billion (2012 constant)
2012 (50% of total
allocated AfT)
 
Source: OECD-DAC, Creditor Reporting System (CRS)  WT/COMTD/AFT/W/49 
 
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12  FIVE DONORS PROVIDED 66% OF AID FOR TRADE IN 2012… 
12.1.  Many donors provided significantly more resources in 2012, although mostly by scaling up 
their loan financing. Multilaterals are providing an increasing share of Aid for Trade, though mostly 
through loans. During 2002-05, multilateral donors pr ovided 36% of the total. This accelerated in 
2011 and 2012 to reach almost 50% - driven by th e European Union Institutions and the World 
Bank and, to a lesser extent, the African and Asian Development Banks. 
12.2.  Five donors (European Union, Japan, World Bank, United States and France) provide 
US$35 billion or 66% of the total, with a third of  that from the European Union. The European 
Union’s support grew significantly in 2011 and 2012 to reach US$11 billion. Japan, traditionally the largest bilateral donor committed US$8.7 billion in 2012, a slight increase on 2011.  
12.3.  The Creditor Reporting System continues to improve its coverage of Aid-for-Trade providers. 
For instance, the Islamic Development Bank started reporting in 2010, and has committed just under US$0.5 billion since. The United Arab Emirates has committed US$1 billion since it started 
reporting in 2009. Annex 2 provides full de tails on the providers of Aid for Trade. 
Figure 10 - Top 5 Aid-for-Trade donors in 2011 and 2012 
EU institutions
Japan
World Bank
United States
France0 2 4 6 8 10 12 14US$ billion (2012 constant)
2012 (66% of total AfT)
2011 (61% of total AfT)
 
Source: OECD-DAC, Creditor Reporting System (CRS)  
 WT/COMTD/AFT/W/49 
 
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13  …BY INCREASING THE SHARE OF LOANS IN THEIR PROGRAMMES 
13.1.  Most bilateral donors provide their Aid for Tr ade in grant form only – the largest of these are 
the United States and the United Kingdom who provide 100% grants. Of the major bilateral donors, only Japan, France and Germany provide loans. Over 80% of Japan’s Aid for Trade is 
provided as loans and this share has been consis tent in recent years. France has scaled up the 
proportion of loans from 70% on average betw een 2008 and 2011 to 90% in 2012. Germany has 
more balance between loans and grants with just over half of its Aid for Trade in loans.  
13.2.  The World Bank through the International Development Association, has a high share of 
loans and this has increased from 80% to 90%. The European Union flows have been transformed by a decision of the OECD Development Assistan ce Committee to include loans of the European 
Investment Bank (EIB) in the ODA statistics. This decision means that for the period 2008-10, the 
data on concessional flows shown for European Union Institutions relate to grants only, but for 2011 and 2012, the EIB loans are included. As a result the loan share of EU Aid for Trade stood at 58% in 2011 and this increased to 68% in 2012.  
Figure 11 - Proportion of loans in donor programmes 
EU Institutions
Japan
World Bank
France
Germany
AfDB
AsDB
Arab Fund
Korea
OFID02468 1 0 1 2 1 4Commitments, US$ billion (2012 constant)
Grants Loans
 
Source: OECD-DAC, Creditor Reporting System (CRS)  
 WT/COMTD/AFT/W/49 
 
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14  BUT TRADE-RELATED OTHER OFFICIAL FLOWS CONTINUE TO DECLINE… 
14.1.  Trade-related Other Official Flows (OOF) provided by the official sector are transactions that 
do not meet the eligibility conditions for ODA, mainly because they have a grant element of less 
than 25% (i.e. they are low concessional loans). These flows can play a crucial role in financing 
trade-related activities (mainly in the area of economic infrastructure and building productive 
capacity). There was a surge in trade-related OOF in 2009 due to increased crisis-related lending 
from multilateral donors mostly to UMICs, but the flows have declined successively each year 
since. In 2012, OOF amounted to US$37 billion, down from US$53 billion at its peak. Low-income countries remain marginal recipients of OOF, but the share has been increasing from 1.5% of the total during 2002-05 to 4% in 2012. Indonesia, Chin a, India, Brazil and Turkey receive the most 
trade-related OOF with a total of US$14 billion or almost 40% of the total. The main providers are 
multilateral institutions such as the International Bank for Reconstruction and Development (IBRD) and Regional Development Banks. The IBRD provid ed loans of US$8.3 billion in 2012. Korea is the 
largest bilateral provider of OOF with US$6.2 billion. 
Figure 12 - Trade-related other official flows 
0.05.010.015.020.025.030.0
Trade Policy &
RegulationsEconomic Infrastructure Building Productive
CapacityUS$ billion (2012 constant)
2002-05 avg. 2006-08 avg. 2009 2010 2011 2012
 
Source: OECD-DAC, Creditor  Reporting System (CRS) 
 WT/COMTD/AFT/W/49 
 
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15  …WHILE G20 MEMBERS ARE ON COURSE TO FULFIL THEIR AID-FOR-TRADE 
PLEDGE… 
15.1.  The Members of the G20 provide the bulk of  Aid-for-Trade funding and at the Seoul Summit 
in 2010 the G20 leaders pledged to “at least maintain, beyond 2011, Aid-for-Trade levels that 
reflect the average of the years 2006 to 2008” (Multi-Year Action Plan for Development). This 
pledge will be fully assessed this year for the first time and the data indicates that the G20 Members have met their pledge for 2012 with Aid-for-Trade commitments of US$34 billion, 
significantly beyond (44%) the 2006-08 average.  
15.2.  This effort was broadly shared among th e G20 Membership (only the United States, Italy 
and Spain failed to maintain resources at 2006-08 levels) and almost 60% was committed to 
economic infrastructure (particularly transport and energy) and this share has not changed 
significantly since the baseline period. However despite this progress, there are a number of trends emerging in G20 support which are less positive -  the terms of G20 Aid for Trade have hardened while the proportion of funds committed to LICs ha s declined. In addition, Aid for Trade policy and 
regulations, which includes trade facilitation, stands at less than US$700 million and has fallen 
since the baseline period. 
Figure 13 – G20
7 Aid-for-Trade commitments 
0510152025303540
Total G20 - DAC membership(US$ billion 2012 constant)
2006-08 avg. 2009 2010 2011 2012
 
Source: OECD-DAC, Creditor  Reporting System (CRS) 
 
                                               
7 G20 Membership reporting Aid for Trade to the DAC are:  Australia, Canada, EU Institutions, France, 
Germany, Italy, Japan, Korea, Spain, Turkey , United Kingdom and the United States.   WT/COMTD/AFT/W/49 
 
- 17 - 
 
   
16  …AND THE OUTLOOK FOR MORE AND BETTER AID FOR TRADE IS MIXED 
16.1.  The Aid-for-Trade Initiative has succeeded in mobilising more Aid for Trade. But the latest 
data illustrate a hardening of terms with more recourse to the use of loans and less Aid for Trade being committed to LDCs. This threatens the prog ress made in expanding the share of Aid for 
Trade to the LDCs, which are particularly in need of assistance to build their trade capacities. 
Recent policy statements among DAC members such as Australia, Canada, Ireland, the Netherlands, Sweden and the United Kingdom high light that private sector development and trade 
are increasing priorities for their aid programmes. Th is could mean that Aid for Trade is well placed 
to hold up well in the coming years, especially since the indications are that overall ODA is recovering following the economic crisis. 
16.2.  Development aid rose by 6.1% in real terms in 2013 to reach the highest level ever 
recorded. Donors provided a total of US$134.8 billion in net ODA, marking a rebound after two years of falling volumes, as a number of governments stepped up their spending on foreign aid. An annual survey of donor spending plans by the OECD Development Assistance Committee indicated 
that aid levels could increase again in 2014 and stabilise thereafter. However, a trend of a falling 
share of aid going to the neediest sub-Saharan African countries looks likely to continue. So while the outlook for the volume of Aid for Trade is reasonably positive, the extent to which these 
resources benefit LDCs will remain an issue of concern.  WT/COMTD/AFT/W/49 
 
- 18 - 
 
  REFERENCES 
Buys, P., U. Deichmann and D. Wheeler (2006), Road Network Upgrading and Overland Trade 
Expansion in Sub-Saharan Africa , World Bank, Washington, D.C.,  
 
Hallaert, J., R. Cavazos Cepeda and G. Kang (2011), Estimating the Constraints to Trade of 
Developing Countries , OECD Trade Policy Papers, No. 116, OECD  
 
Hynes, W. and S. Scott, (2013), The Evolution of Official Development Assistance: Achievements, 
Criticisms and a Way Forward,  Development Co-operation Working Paper No. 12, OECD  
 OECD (2013), The “Where” of Development Finance , Paris: OECD  
 
OECD/WTO (2013), Aid for Trade at a Glance 2013: Connecting to Value Chains , Paris: OECD 
 
OECD/WTO (2011), Aid for Trade in the LDCs: Starting to Show Results, Geneva: WTO 
 Shepherd, B. and J.S. Wilson (2008), Trade Facilitation in ASEAN Member Countries: Measuring 
Progress and Assessing Priorities , Policy Research Working Paper 4615, World Bank Development 
Research Group Trade Team,  Washington, D.C. 
 WT/COMTD/AFT/W/49 
 
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  ANNEX 1 – AID-FOR-TRADE EXAMPLES OF LARGE PROJECTS, 2012 
 
Donor Recipient Finance  Project Purpose US$ million 
Japan India Loan Delhi Mass Rapid 
Transport System 
Project Phase 3 Rail transport 1 581.4  
Japan India Loan Tamil Nadu 
Transmission System 
Improvement Project Electrical 
transmission-
distribution  757.8  
United States Afghanistan Grant Modern Energy 
Services Energy policy and 
admin. management  694.0  
Japan Vietnam Loan Ho Chi Minh City 
Urban Railway 
Construction Project 
(Ben Thanh - Suoi 
Tien Section 
(Line1))(II) Rail transport  522.8  
Japan Iraq Loan Basrah Refinery 
Upgrading Project (I) Oil and gas  521.4  
EU Institutions Turkey Loan Istanbul-Ankara 
Railway B Rail transport  514.1  
World Bank Viet Nam Loan Distribution Efficiency 
Project Electrical 
transmission-distribution  448.9 
 
EU Institutions Egypt Loan ERC Refinery Energy manufacturing  445.2  
World Bank Kenya Loan The Eastern Electricity 
Highway Project under the First Phase of the Eastern Africa 
Power Integration 
Program Electrical 
transmission-distribution  432.2 
 
World Bank Pakistan Loan Tarbela Fourth 
Extension Hydropower 
Project Hydro-electric power 
plants  391.6  
France Egypt Loan Financement Ligne 3 
metro du Caire Rail transport  385.6  
France Brazil Loan Budget support Transport policy & 
admin. management  383.7  
Japan Egypt Loan Greater Cairo Metro 
Line No. 4 Phase I Project Rail transport  372.6 
 
World Bank Nigeria Loan Nigeria Erosion  and 
Watershed 
Management Project Agricultural land 
resources  355.0  
Japan Sri Lanka Loan Bandaranaike 
International Airport Development Project 2 Air transport  336.5 
 
France Mexico Loan Modernisation of 
electricity 
infrastructure Power generation-
renewable sources  317.7  
Japan Kenya Loan Mombasa Port Area 
Road Development Project Road transport  298.8 
 
World Bank India Loan National Dairy 
Support Project Livestock  292.2  
EU Institutions Morocco Loan Construction of a 
highway between Berrechid et Béni Mellal (172 km), ADM VII  Road transport  282.8 
 
France Morocco Loan First high speed 
railroad (Tanger-
Kenit) Rail transport  282.8  
 
 WT/COMTD/AFT/W/49 
 
- 20 - 
 
   
ANNEX 2 – AID FOR TRADE BY DONOR, COMMITMENTS 
US$ million (2012 constant) 
  2002-05 
avg. 2006 2007 2008 2009 2010 2011 2012 
DAC countries          
Australia  261   345   204   635   575   699   583  567  
Austria  48   37   62   70   79   96   67   72  
Belgium  250   225   295   305   531   422   450   138  
Canada  405   319   412   599   568   754   469   593  
Czech Republic .. .. .. ..  0   0   11   10  
Denmark  456   281   370   241   347   361   286   384  
Finland  83   94   120   187   349   265   313   127  
France  754  1 053  1 401  2 337  1 455  1 695  1 246  3 503  
Germany 1 272  2 067  1 650  2 749  2 520  4 417  3 498  3 331  
Greece  13   31   15   13   17   19   19   0  
Iceland .. .. .. .. .. ..  7   8  
Ireland  28   36   36   65   57   64   65   52  
Italy  274   341   156   254   262   173   105   190  
Japan 6 018  6 172  5 988  10 730  6 763  10 056  7 820  8 667  
Korea ..  194   497   675  1 124   746   749   778  
Luxembourg  18   19   41   42   32   38   39   41  
Netherlands  583   948   700   619   640   559  1 107  1 105  
New Zealand  23   66   24   51   37   71   190   83  
Norway  355   458   555   743   893  1 045  1 075   990  
Portugal  45   10   62   17   85   52   24   22  
Spain  402   764   625   801   848  1 288   595   82  
Sweden  260   395   396   338   401   409   337   390  
Switzerland  321   265   268   324   219   324   417   307  
United Kingdom  750   629   476  1 720  2 014  1 013   792  1 073  
United States 3 974  5 005  5 128  6 796  4 723  6 031  3 677  3 962  
Sub-total 16 594  19 754  19 481  30 310  24 540  30 595  23 943  26 475  
Other bilateral          
Kuwait .. .. .. .. ..  774   247   509  
Turkey .. .. .. ..  31   111  .. .. 
United Arab 
Emirates .. .. .. ..  497   207   128   224  
Sub-total .. .. .. ..  527  1 092   375   733  
Multilateral          
African Dev. Bank  162   609  1 232   477  2 249  1 726   903  2 300  
AITIC .. .. ..  3  .. .. .. .. 
Arab Fund .. .. .. 1 269  1 037  1 176  1 147   972  
Asian Dev. Bank  820   443   699   568   878  1 555  1 466  1 397  
BADEA .. .. .. .. .. ..  81   111  
ESCAP .. ..  0   1   0   0   1   1  
ESCWA .. ..  0   0   0   0   0   0  
EU Institutions 2 757  3 587  3 002  3 501  4 001  2 971  7 229  11 281  
FAO .. ..  187   244   302   303   285   309  
GEF .. .. .. .. ..  215   175   305  
World Bank 4 900  3 211  5 711  4 917  6 943  5 549  7 182  7 882  
IADB  266   69   209   86   249   725   440   571  
IFAD  294   374   477   382   514   606   769   604  
IMF .. ..  17   17   15   14   15   16  
Islamic Dev. Bank .. .. .. .. ..  186   102   165  
Nordic Dev. Fund .. .. .. ..  17   29   20   20  
OFID .. .. .. ..  423   447   259   530  
UNDP  13   26   24   29   45   34   30   22  WT/COMTD/AFT/W/49 
 
- 21 - 
 
    2002-05 
avg. 2006 2007 2008 2009 2010 2011 2012 
UNECE .. .. ..  4   6   4   4   3  
UNICEF  1  .. .. ..  0   0   5   8  
UNIDO .. .. ..  88   112   42   47   42  
UNPBF .. ..  1   10   0   3   0   0  
WFP .. .. .. .. .. .. .. .. 
WTO .. ..  18   25   16   20   15   13  
ITC .. ..  44   55   55   58   63   69  
Sub-total 9 213  8 318  11 621  11 676  16 862  15 666  20 238  26 622  
Total Aid for Trade 25 807  28 073  31 102  41 986  41 929  47 353  44 556  53 830  
 WT/COMTD/AFT/W/49 
 
- 22 - 
 
   
ANNEX 3 – AID FOR TRADE BY RECEPIENT, COMMITMENTS 
US$ million (2012 constant) 
  2002-05 
avg. 2006 2007 2008 2009 2010 2011 2012 
Afghanistan  785  1 258  1 546  1 771  1 537  2 055  1 941  1 837  
Albania  136   222   32   109   44   209   193   27  
Algeria  103   222   167   35   13   26   36   24  
Angola  20   36   138   89   21   76   19   11  
Anguilla  1   12   5  ..  0   0  .. .. 
Antigua and  
Barbuda  3   0   0   1   17   0   1   1  
Argentina  47   30   37   16   30   76   26   123  
Armenia  121   309   142   218   177   165   102   141  
Azerbaijan  151   86   135   68   155   106   118   12  
Bangladesh  807   624   795  1 105   957  1 255  1 872  1 055  
Barbados  1   4   15   14   2   0  .. .. 
Belarus  1   2   14   9   19   61   4   6  
Belize  9   13   3   12   24   26   9   35  
Benin  116   331   88   175   237   248   159   106  
Bhutan  46   17   95   29   79   58   49   40  
Bolivia  260   131   284   82   266   335   402   257  
Bosnia-
Herzegovina  118   205   164   141   254   235   227   223  
Botswana  16   2   10   5   5   22   5   120  
Brazil  52   46   107   56   277   481   423  1 337  
Burkina Faso  234   173   134   208   601   341   343   321  
Burundi  52   92   85   88   132   209   197   135  
Cambodia  204   222   179   286   271   486   253   278  
Cameroon  115   321   322   231   355   165   343   434  
Cape Verde  80   26   68   113   118   66   44   108  
Central African 
Rep.  34   124   52   6   90   17   89   136  
Chad  92   2   68   26   100   15   174   69  
Chile  40   8   20   75   69   31   88   12  
China  876   608   423   726   586   605   175   313  
Colombia  85   134   136   192   184   205   325   166  
Comoros  4   9   7   2   31   7   6   26  
Congo, Dem. Rep.  515   160   478   284   722   736   780   430  
Congo, Rep.  39   24   66   25   45   28   89   62  
Cook Islands  2   0   0   1   9   5   17   7  
Costa Rica  53   13   27   30   14   18   52   7  
Côte d'Ivoire  55   21   42   273   275   234   210   198  
Croatia  66   77   90   176   74   74  .. .. 
Cuba  10   8   10   17   14   29   11   14  
Djibouti  23   1   5   15   27   59   55   61  
Ecuador  53   19   94   65   73   93   35   182  
El Salvador  30   26   414   164   136   60   49   29  
Equatorial Guinea  1   0   1   0   1   0   2   0  
Eritrea  52   21   68   19   64   16   3   17  
ESCAP  15   6   7   7   9   0   0   33  
ESCWA  43   36   37   33   70   87   229   44  
Ethiopia  540   709   934   669   770   952   456  2 006  
FAO  592   859   565  1 250   487  1 930   795  2 086  
Fiji  9   12   6   19   7   21   19   24  
Former Yugoslav 
Republic of 
Macedonia  52   33   49   64   45   87   85   254  WT/COMTD/AFT/W/49 
 
- 23 - 
 
    2002-05 
avg. 2006 2007 2008 2009 2010 2011 2012 
Gabon  41   72   16   64   23   41   5   3  
Gambia  28   18   11   9   35   74   70   153  
Georgia  103   383   93   240   546   458   109   497  
Ghana  288   351   842   668   783   862   541   736  
Grenada  9   1   0   4   15   2   15   19  
Guatemala  30   118   31   29   94   87   54   178  
Guinea  62   64   132   13   40   11   121   142  
Guinea-Bissau  26   24   19   5   15   26   13   2  
Guyana  45   12   102   55   45   54   74   105  
Haiti  90   93   68   151   329   389   746   369  
Honduras  189   36   36   148   164   371   112   92  
India 1 756  1 996  2 488  3 670  1 914  3 459  3 689  3 951  
Indonesia 1 299  1 111   899   893  1 402   862   640   252  
Iran  6   4   2   1   3   13   7   5  
Iraq 2 193  2 307  1 248  3 333   412   853   117   806  
Jamaica  35   19   52   36   41   47   49   11  
Jordan  44   7   73   258   201   151   288   433  
Kazakhstan  38   61   181   97   58   211   9   7  
Kenya  324   531   958   95  1 000  1 704   876  2 321  
Kiribati  9   2   19   6   9   5   109   8  
Korea, Dem. Rep.  35   9   3   16   4   1   0   22  
Kosovo .. .. .. ..  143   63   111   52  
Kyrgyz Republic  55   81   105   69   109   172   208   164  
Laos  164   138   154   115   110   279   255   221  
Lebanon  26   30   162   58   56   83   27   40  
Lesotho  7   29   67   5   23   31   36   3  
Liberia  1   22   158   50   294   199   199   384  
Libya  2   3   5   6   9   18   3   3  
Madagascar  302   167   228   409   58   37   69   261  
Malawi  118   123   185   132   186   281   312   342  
Malaysia  15   11   33   93   49   34   6   37  
Maldives  9   3   32   14   27   17   2   27  
Mali  171   149   794   590   643   329   264   68  
Marshall Islands  5   1   2   1   23   1   1   20  
Mauritania  117   173   30   209   56   66   311   140  
Mauritius  56   42   14   46   108   35   7   73  
Mayotte  19   0   37   36   21   50  .. .. 
Mexico  27   23   61   68   74   172   132   362  
Micronesia, Fed. 
States  15   17   4   40   21   2   3   5  
Moldova  67   51   50   42   63   388   122   299  
Mongolia  62   155   82   616   133   316   114   145  
Montenegro  7   14   53   24   28   26   23   25  
Montserrat  8   19   11   5   3   0   2   10  
Morocco  320   523   293  1 850  1 002  1 325   610  2 282  
Mozambique  351   361   514   535   386   673   327   370  
Myanmar  13   19   12   24   23   36   56   69  
Namibia  33   136   31   92   136   86   55   52  
Nauru  3   15   14   9   8   0   1   7  
Nepal  178   229   223   207   309   451   442   439  
Nicaragua  203   340   89   199   207   319   191   235  
Niger  107   83   45   203   129   66   147   337  
Nigeria  250   193   198   666  1 026   342   492   990  
Niue  2   4   2   0   4   4   10   3  
Oman  3   1   1   19   198   5  .. .. WT/COMTD/AFT/W/49 
 
- 24 - 
 
    2002-05 
avg. 2006 2007 2008 2009 2010 2011 2012 
Pakistan  630   442   678  1 222   728  1 039   599  1 595  
Palau  8   3   18   2   10   2   1   25  
Palestine, West 
Bank & Gaza Strip  65   44   63   171   233   189   83   95  
Panama  11   7   24   9   19   19   26   9  
Papua New Guinea  147   193   135   149   179   254   229   84  
Paraguay  18   261   23   39   78   193   19   18  
Peru  133   190   118   95   217   153   101   212  
Philippines  388   85   348   343   953   153   885   905  
Rwanda  79   125   107   169   423   220   307   238  
Samoa  17   3   77   20   5   25   30   13  
Sao Tome & 
Principe  8   9   6   5   23   5   25   3  
Saudi Arabia  2   2   2  .. .. .. .. .. 
Senegal  187   262   127   348   414   836   236   362  
Serbia  441   271   276   324   106   297  1 582  1 053  
Seychelles  3   4   1   15   2   1   1   11  
Sierra Leone  97   20   104   132   36   172   90   107  
Slovenia  6  .. .. .. .. .. .. .. 
Solomon Islands  14   56   5   22   9   48   69   34  
Somalia  4   10   9   24   38   14   38   95  
South Africa  130   131   118   234   164   215   109   79  
South Sudan .. .. .. .. .. ..  128   144  
Sri Lanka  534   378   374   546   382   391   649   680  
St. Helena  42   22   6   17   24   9   65   9  
St. Kitts-Nevis  2   0   0   1  ..  1   1   12  
St. Lucia  9   9   9   9   1   4   7   33  
St. Vincent & 
Grenadines  7   13   11   1   2   0   0   20  
States Ex-
Yugoslavia  55   1   2   3   3   3  .. .. 
Sudan  25   35   73   588   248   387   608   290  
Suriname  23   6   25   24   58   0   6   14  
Swaziland  18   9   23   35   23   25   74   10  
Syria  18   26   52   11   284   187   110   3  
Tajikistan  100   81   136   151   89   247   244   185  
Tanzania  422   441   568  1 394   821  1 472   595   685  
Thailand  426   50   57   780   803   391   24   29  
Timor-Leste  36   28   37   48   34   97   54   120  
Togo  6   3   5   94   61   157   77   41  
Tokelau  2   1   2   1   1   1   10   13  
Tonga  3   4   15   29   4   33   78   29  
Trinidad and 
Tobago  16   2   12   14   15   24  .. .. 
Tunisia  219   169   246   482   295   523   266  1 098  
Turkey  506   260   215   752   271   979  2 057  3 259  
Turkmenistan  3   1   1   4   3   19   5   2  
Turks and Caicos 
Islands  0  .. .. .. .. .. .. .. 
Tuvalu  5   1   12   7   2   1   17   5  
Uganda  268   199   857   300  1 010   788   445   396  
Ukraine  94   212   234   281   297   178   277   616  
Uruguay  6   3   6   5   15   11   5   6  
Uzbekistan  169   38   47   84   128   526   63   414  
Vanuatu  7   70   33   31   30   20   20   95  
Venezuela  3   3   2   1   2   2   2   1  
Viet Nam 1 711  1 490  2 256  2 192  2 725  1 804  3 428  2 584  WT/COMTD/AFT/W/49 
 
- 25 - 
 
    2002-05 
avg. 2006 2007 2008 2009 2010 2011 2012 
Wallis & Futuna  7  ..  3   2   3   5   5   5  
Yemen  52   84   75   293   666   320   257   144  
Zambia  224   297   191   216   311   177   449   462  
Zimbabwe  11   5   33   10   117   121   76   97  
Developing 
countries 23 543  23 733  26 980  36 950  34 655  40 334  37 228  46 821  
Regional and 
global 2 264  4 340  4 122  5 036  7 274  7 018  7 328  7 009  
 
 
  
__________