WORLD TRADE  
ORGANIZATION  WT/COMTD/AFT/W/18/Add.1 
12 May 2010 
 (10-2727) 
Committee on Trade and Development 
Aid for Trade  
 
 
 
PROGRESS IN IMPLEMENTATION OF THE 2010-2011  
AID-FOR-TRADE WORK PROGRAMME 
 
Background Note prepared by the Secretariat1 
 
Addendum  
  
I. INTRODUCTION 
1. This background note has been prepared to  update Members on the progress that has been 
made in implementation of the 2010-2011 Aid-fo r-Trade Work Programme since the Committee on 
Trade and Development's (CTD) Fourteenth Session on Aid-for-Trade which was held on 
17 March 2010.  The note follows the same stru cture as the Work Programme found in document 
WT/COMTD/AFT/W/16.   
2. The background note is not a comprehensive an alysis of ongoing Aid-for-Trade actions.  It 
covers only the activities of international organizati ons, as reported to the WTO, which are in support 
of the implementation of the 2010-2011 Aid-for-Trade Work Programme.
2  Members are encouraged 
to complement this note by reporting on thei r activities at the CTD's Fifteenth Session on 
Aid-for-Trade to be held on 27 May 2010.   
II. RESOURCE MOBILIZATION  
3. At the CTD's Fifteenth Session on Aid-for- Trade, the Organisation for Economic 
Co-operation and Development (OECD) will give a detailed overview of Aid-for-Trade flows in 
2008.  As in previous years, the report will be based on information supplied to the OECD Creditor 
Reporting System (CRS).3   
4. Preliminary analysis shows that, despite the global economic downturn, donor commitment to 
Aid-for-Trade additionality was strong in 2008.  In 2006 and 2007, Aid for Trade grew by 10 per cent 
in real terms.  In contrast, a 37 per cent increase in real terms was recorded between 2007 and 2008.  
Total Aid for Trade reached US$41.7 billion in 20 08, an increase of 62 per cent from the 2002-20005 
baseline.     
                                                      
1 This document has been prepared under the Secret ariat's own responsibility and without prejudice to 
the positions of Members and to their rights and obligations under the WTO. 
2 As such, the note omits many of the Aid-for-Trade activities of international organizations and 
excludes the activities of bila teral donors.  It should be  noted that bilateral Aid-fo r-Trade activities accounted for 
75 per cent of Aid for Trade in 2007.  
3 For an explanation of how Aid for Trade is  measured, please refer to the OECD website: 
http://www.oecd.org/document/21/0,3343,en_2649_34665_43230357_1_1_1_1,00.html . WT/COMTD/AFT/W/18/Add.1 
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  5. In 2008, Aid for Trade accounted for 37 per cen t of sector allocable Official Development 
Assistance (ODA) in 2008 – up from 32 per cent in 2007.
4  Bilateral and multilateral donors scaled up 
their Aid-for-Trade support by 54 per cent and 12 pe r cent, respectively.  Jap an was the largest donor 
(US$8.7 billion), followed by the United States (US$6.4 billion), the European Union 
(US$5.9 billion), the World Bank International De velopment Association (IDA) (US$5.2 billion), and 
Germany (US$2.9 billion).   
6. With respect to regional distribution, Asia and A frica continued to be the top two recipients of 
Aid for Trade in 2008.  Asia received US $18.5 billion, accounting for 44 per cent of total 
Aid-for-Trade flows (a 40 per cent increase on 2007 figures) and Africa received US$14.5 billion, 
accounting for 35 per cent of total Aid-for-Trade fl ows (a 23 per cent increase on 2007 figures).  Aid 
for Trade to Europe amounted to US$3.9 billion, accounting for 10 per cent of total Aid-for-Trade 
flows.  The Americas received US$10 billion (5 per cent of total Aid-for-Trade flows), and Oceania US$0.38 billion (1 per cent of total Aid-for-Trade flows). 
7. All sectoral areas of Aid-for-Trade interventi ons received increased support in 2008.  The 
transport and storage sector showed the largest increase, receiving a total of US$14.6 billion (an 
increase of 75 per cent).  This sector now accounts for 35 per cent of total Aid for Trade.  Trade 
policy and regulation received US$1.3 billion (an increase of 37 per cent);  and economic 
infrastructure received US$23 billion (an increase of 43 per cent).  Support to the energy and banking and finance sectors also increased (both received an additional US$1 billion), and an increase of 
24 per cent was seen in building productive capacity, which received US$17 billion.   
Aid-for-Trade Commitments by Region and by Type 
2002-2008 
 
02468101214161820
2002-05
2006
2007
2008
2002-05
2006
2007
2008
2002-05
2006
2007
2008
2002-05
2006
2007
2008
2002-05
2006
2007
2008
Africa Americas Asia Europe Oceania
Trade Policy & Regulations Economic Infrastructure Building Productive CapacityCommitments, US$ billion ( 2008 constant)
 
 
Source :  OECD. 
 
  
                                                     
 
4 Sector allocable ODA is aid that is spent on speci fic economic or social sectors as opposed to aid 
allocated to debt relief, emergency ai d, administrative costs and refugees.  WT/COMTD/AFT/W/18/Add.1 
 Page 3 
 
 
  8. A workshop on Aid for Trade and Development Finance is being organized on 27 May 2010 
to examine the role of various thematic areas that  have relevance in the broader context of ongoing 
multilateral dialogue on development finance.  Discu ssion will focus on the role of Aid for Trade in 
multilateral frameworks for financ ing and development and the outl ook for development finance more 
broadly, as well as on a specific growth area in development financing, namely Islamic Finance.   
9. On 25 April 2010, a general capital increase of  US$86.2 billion was agreed for the World 
Bank Group at the meeting of Developmen t Committee of the Board of Governors.5  The general 
capital increase was accompanied by a shift in votin g power to developing countries, backing for the 
Bank's new post-crisis strategy, and a comprehensiv e reform package to make the Bank faster, more 
flexible, and more accountable.  Agreement on a US$200 million increase in the capital of the 
International Finance Corporation (IFC), the Wo rld Bank Group's private sector arm, was also 
reached.  Negotiations are also ongoing on replenishment of the IDA as part of IDA-16 discussions.6   
10. The Inter-American Development Bank (IaDB) held its 51st Annual General Meeting in 
Cancún, Mexico from 19-23 March 2010.  Agr eement was reached on a recapitalization of 
US$70 billion which increased the Bank's ordinary capital to more than US$170 billion.  The 
recapitalization should allow it to double its lending cap acity to an average of US$12 billion a year.  
The Agreement included replenishment of the IaDB 's Fund for Special Operations which finances 
operations in the poorest nations of the Latin Amer ican and Caribbean (LAC) region.  The Bank's 
Governors also set priority areas for the IaDB's work, such as providing more support to small and 
vulnerable economies and to programmes to reduce poverty in the LAC region. 
11. The Inter-American Development Bank Aid-fo r-Trade Strategic Fund was launched in 
November 2008 to help Latin America and the Cari bbean to integrate into the global economy and 
benefit from liberalized trade and increased market ac cess.  It is now fully operational and funding for 
an initial five-year period has been received from Canada, Switzerland, and the United Kingdom.  
Discussions are ongoing to mobilize additional resources.   
12. The 2010 Annual Meetings of the Boards of Governors of the African Development Bank 
(AfDB) and the African Development Fund will be held in Abidjan, Côte d'Ivoire, from 
27-28 May 2010.   One item on the agenda will be the proposal for a tripling of the Bank's capital 
resources to nearly US$100 billion.  The capital increase was approved at a meeting of the committee 
of governors on 23 April 2010 in Washington D.C.  and will be recommended to the full membership 
of the AfDB at the annual meeting.  Another ite m for discussion is replenishment of the African 
Development Fund (ADF-12).  Cons ultations on replenishment of ADF -12 began in Helsinki, Finland 
during the ADF-11 Mid-Term Review on 20 and 21 Oc tober 2009.  Further consu ltations were held in 
Cape Town, South Africa on 22 and 23 February 2010.7   
13. The 43rd Annual Meeting of the Board of Governor s of the Asian Development Bank  (AsDB) 
was held in Tashkent, Uzbekistan on 3 and 4 May 2 010.  The meeting brought together ministers of 
finance and development, central bankers, private s ector representatives, civil society and media to 
discuss a broad range of issues linked to AsDB's  mission to reduce poverty.  Themes discussed 
                                                      
5 For the full text of the Development Committee Communiqué, see: 
http://siteresources.worldbank.org /DEVCOMMINT/New sAndEvents/22556084/FinalCommunique(E)042510.p
df. 
6 For more information on the IDA- 16 replenishment exercise, see: 
http://web.worldbank.org/WBSITE/EXTERNAL/EXT ABOUTUS/IDA/0,,contentMDK:22495227~menuPK:68
27445~pagePK:51236175~piPK:437394~theSitePK:73154,00.html . 
7 Further information can be f ound at the AfDB website at http://www.afdb.org/en/ . WT/COMTD/AFT/W/18/Add.1 
Page 4  
 
  included how accelerating Asian regional integrat ion could contribute to global growth, AsDB's 
progress in improving its development effectiveness, and AsDB's climate change initiatives
.8 
14. The European Bank for Reconstruction and Development (EBRD) will hold its Annual 
General Meeting in Zagreb, Croatia on 14-15 May 2010.  EBRD shareholders will be requested to 
provide additional capital to maintain business volumes at US$8-9 billion per annum.9  T h e  3 5th 
Annual Meeting of the Board of Governors of the Islamic Development Bank will take place in Baku, 
Azerbaijan on 20-24 June 2010.10   
III. MAINSTREAMING  
15. A public consultation on the World Bank's Gr oup-wide Trade Strategy was held on 
18 March 2010.  The meeting provided an opportu nity for representatives from the Geneva trade 
community, including academics, civil society groups, and other international organizations, to raise 
issues of concern and ideas on ways the Bank mi ght better fulfil its poverty reduction mandate 
through Aid for Trade.  The consultation process w ill culminate in the preparation of a full draft 
strategy paper to be presented to the World Bank Bo ard in the autumn of 2010.  Further information 
can be found at the World Bank website http://www.worldbank.org . 
16. The integration of an analysis of Aid for Tr ade into the Trade Policy Review (TPR) process 
was included as an action in the 2010-2011 Aid-for- Trade Work Programme.  Six pilot TPRs (Belize, 
China, Honduras, Malawi, the United States and the joint review of Benin, Burkina Faso and Mali) 
were identified.  Two TPR meeti ngs will take on pilot countries be fore the next CTD Aid-for-Trade 
meeting: China on 31 May and 2 June 2010 and Malawi on 9 and 11 June 2010.11  Work is 
approaching completion on the other pilot country TPRs.  Assistance is being provided by the 
Inter-American Development Bank (IaDB) for the TPRs  of Belize and Honduras as part of the IaDB's 
plans to provide technical and financial assistance  to help developing countries in the LAC region 
prepare their own Aid-for-Trade strategies.  Work  is also commencing to integrate Aid-for-Trade 
analysis into TPRs for non-pilot countries including  the Democratic Republic of the Congo, Gambia, 
Hong Kong, Jamaica, Sri Lanka, and Papua New Guinea. 
17. The Enhanced Integrated Framework Steering Committee (EIFSC) held its first meeting on 
30 April 2010 and elected a new Chair, H.E. Mr . Hannu Himanen (Finland).  The Committee adopted 
new terms of reference as an advisory body of th e EIF, providing strategic advice and guidance to EIF 
stakeholders on the implementation of the prog ramme and its overall goals, and as a forum for 
transparency, exchange of information and experience.   The full EIF Board also held its first meeting 
under the chairmanship of H.E. Dr. Mothae Anthony Maruping (Lesotho).  The Board adopted its 
terms of reference and set dates for its July and November 2010 sessions.   
18. A first sub-regional workshop under the EIF Cap acity Building Programme was held for the 
Pacific countries in Port Vila, Vanuatu from 16- 18 March 2010.  The workshop provided impetus for 
the Pacific EIF beneficiary countries to benefit fro m the support offered by the EIF and participating 
countries were able to draw up specific targets and roadmaps for EIF implementation.  A similar event 
is being planned for 2011 to evaluate the medium -term outcomes of this first workshop.  The next 
regional workshop – for LDCs in Asia – is expected  to take place in Nepal in late May 2010 where 
the focus will be on additional EIF implementation i ssues, and further workshops are expected to be 
                                                      
8 Further information can be found at http ://www.adb.org/AnnualMee ting/2010/default.html . 
9 Further information on the EBRD is available at http://www.ebrd.com/ . 
10 Further information is available from the IsDB at:  
http://www.isdb.org/irj/go/km/docs/documents/IDBDeve lopments/Internet/English/IDB/CM/AnnualMeeting20
10/English/index.html . 
11 See WT/TPR/251/Rev.3 for the programme of reviews for 2010.  WT/COMTD/AFT/W/18/Add.1 
 Page 5 
 
 
  held in the third quarter of 2010 for French-speak ing and English-speaking LDCs in Africa.  Efforts 
are also under way to involve other strategic partners in this process. 
19. Funding initially expected for the multi-donor Trust Fund of the EIF programme amounts to 
US$250 million over a period of five years.  As of 14  April 2010, contributions to the Fund totalled 
US$98.8 million.  This amount comprises old IF funds (US$31.3 million), new donor contributions 
(US$61.5 million), and interest earned during 2008 and 2009. These contributions represent 
37 per cent of the total funding target for the five-year EIF programme.  Prospects for 2010 onwards are promising with some donors having already sign ed contribution agreements which will bring the 
expected total up to US$182 million, however, th ere remains a funding gap of US$68.6 million that 
must be addressed.
12 
20. The United Nations Industrial Organization (UNIDO) is carrying out mainstreaming 
Aid-for-Trade related support through the establishm ent of a comprehensive compendium of trade 
capacity building (TCB) related technical assistan ce. The TCB inter-agency Resource Guide, which 
was first prepared in 2008, now covers 25 agencies  from the UN system, five regional development 
banks, as well as the 24 OECD DAC members and the bilateral technical assistance provided through 
their countries' Aid-for-Trade strategies.  The 2010 version of the TCB Resource Guide will be 
published by July 2010 after the conclusion of the on going validation process with all contributors.  It 
will also be made available on the UN website fo r use by in-country partners.  The Guide is a 
contribution to the work of the UNCTAD-coordi nated UN-CEB Inter-Agency Cluster on Trade and 
Productive Capacity which, inter alia , serves to strengthen the UN response to the Aid-for-Trade 
initiative. Trade is also being mainstreamed in to the UN Development Assistance Frameworks 
(UNDAFs).13  Further information on the UN-CEB Inte r-Agency Cluster on Trade and Productive 
Capacity can be found at http://www.unctad.org/Templates/St artPage.asp?intItemID=4793&lang=1 . 
IV. IMPLEMENTATION 
21. The third meeting of the AsDB's Regional Tec hnical Group (RTG), co-hosted by the Ministry 
of Foreign Affairs, Japan and th e Asian Development Bank, will take place in Tokyo, Japan on 10 and 
11 May 2010.  Cambodia co-chairs the RTG with Japan.  The agenda will consider a draft RTG 
report, RTG activities for 2010-2011 including the planned presentation of the RTG report at the WTO and a future regional meeting, building new partnership programmes and projects on Aid for 
Trade, and expanding membership and exploring funding options for the RTG process.  The AsDB 
serves as the secretariat to the RTG and maintains a website with resources, projects and events on the 
Aid-for-Trade initiative in the region.  A report on the RTG meeting will be given at the CTD 
meeting.
14 
22. A preparatory meeting is being organized by  the African Development Bank (AfDB), in 
Douala, Cameroon at the end of June 2010, to  discuss the planning and organization of an 
Aid-for-Trade regional review in Central Africa.15  The preparatory process will include an 
                                                      
12 Since it became operational in July 2009, the EIF has approved and funded 20 projects – totalling 
US$13.8 million.  The EIF Executive Secr etariat is currently working to finalize Tier 1 projects in the following 
countries:  Burkina Faso, Benin, Central African Repub lic, Comoros, Chad, Djibouti, the Democratic Republic 
of the Congo, Ethiopia, Guinea, Guinea-Bissau, Madagascar, Maldives, Mali, Niger, Solomon Islands, Sudan, 
Tanzania, Timor Leste, and Vanuatu.  For further information see: 
http://www.wto .org/english/tratop_e/d evel_e/teccop_e/if_e.htm . 
13 The UNDAF is the strategic programme framework that describes the collective response of the UN 
system to national development priorities.  
14 For further information see ( http://www.aric.adb.org/ aid-for-trade-asia/ ). 
15 The AfDB's operational definition of Central Africa covers both CEMAC (Cameroon, Central 
African Republic, Chad, Republic of Congo, Equatorial Guinea, and Gabon) and ECCAS (Angola, Burundi, WT/COMTD/AFT/W/18/Add.1 
Page 6  
 
  assessment of trade-related needs, and national and regional Aid-for-Trade  strategies, and will 
culminate in a regional review meeting.   
23. Preparations are advancing for a Ministerial mee ting that is being organized in the context of 
the Aid-for-Trade Roadmap for the United Nations  Special Programme for the Economies of Central 
Asia (SPECA).
16  The meeting is scheduled to take place in November 2010 in Azerbaijan.17  
24. A High-Level event on South-South Cooperation and Capacity Development was held in 
Bogotá, Colombia on 24-26 March 2010 at which the Bogotá Statement Towards Effective and 
Inclusive Development Partnership was endorsed.  Based on over 110 case stories of South-South cooperation and aid effectiveness, the Bogotá Statemen t reflects agreement in areas such as greater 
transparency for South-South Cooperation and streng thened mechanisms for peer-to-peer knowledge 
sharing and exchange.  The meeting, which was based on the work of the OECD Task Team on 
South-South Cooperation and hosted by the Governme nt of Colombia, was held as part of the aid 
effectiveness agenda and the process leading up to  the 4th High Level Forum on Aid Effectiveness to 
be held in Korea in late 2011.
18 
25. The United Nations Committee on Trade and Development (UNCTAD) is organizing a 
High-level Meeting on Trade Capacity-Building and Competition Policy for African LDCs which will 
be held in Lusaka, Zambia on 10-12 May 2010.  Topics to be addressed at the meeting include 
strategies to promote sustainable growth in A frican LDCs and features and benefits of India's 
duty-free, quota-free trade scheme and related Aid-for-Trade support 
V. MONITORING AND EVALUATION 
26. The next meeting OECD Joint Development A ssistance Committee and the Working Party of 
the Trade Committee on Aid for Trade (DAC/WPTC)  will take place on 7 June 2010 and will focus 
on three issues:  continued monitoring of progress in the delivery and implementation of Aid for Trade;  linking the initiative to the wider trad e and development agenda ;  and engaging non-OECD 
members through a policy dialogue on Aid for Trade.  OECD's ongoing work on monitoring and evaluation includes a meta-evaluation of Aid-for-Tra de projects (which includes national evaluations 
for Ghana and Viet Nam).
 19   
27. In 2008, the IaDB approved a Development Effectiveness framework which will allow the 
Bank to enhance the quality, efficiency, and accountab ility of its projects in Latin America and the 
Caribbean, and thus improve its operations' out comes.  The first edition 2008-2009 of the 
Development Effectiveness Overview (DEO) takes st ock of the Bank's work over the last two years 
and shows progress made in implementing the new policy on development effectiveness.  The DEO 
also reports on the available empirical evidence ab out the effectiveness of programmes financed by 
the Bank and presents the Bank's Results Framework that will allow for the monitoring of its performance and effectiveness.  The IaDB is al so putting in place a monitoring and evaluation 
                                                                                                                                                                    
 
Cameroon, Central African Republic, Chad, Republic of Congo, the Democratic Republic of the Congo, 
Equatorial Guinea, Gabon, and Sao Tome and Principe).  
16 SPECA economies include Afghanistan, Azerbaijan, Kazakhstan, Kyrgyzstan, Tajikistan, 
Turkmenistan and Uzbekistan. 
17 Further information can be found at http://www.itfc-id b.org/node/216 . 
18 More information is available at http://bogotahle.info . 
19 A meta-evaluation is an evaluation that aggregates findings from other evaluations.  Further 
information on OECD's Aid-for-Trade related activities can be found at http://www.oecd.org/dac/aft .  WT/COMTD/AFT/W/18/Add.1 
 Page 7 
 
 
  mechanism for its Aid-for-Trade Strategic Fund an d has emphasized the importance for key actors to 
work towards a common approach and to share best practices.20   
28. The United Nations Economic Commission for A frica (UNECA), in cooperation with the 
AfDB and the WTO, is organizing an Expert Group Meeting and Workshop on Aid for Trade and Africa's Trading Capacity:  Suppl y, Demand and Performance.  The meeting will take place in Addis 
Ababa, Ethiopia from 31 May to 2 June.  The purpose of the meeting is to enhance the capacity of 
African countries to map the Aid-for-Trade demand with supply and how to assess its effectiveness in 
order to optimize the supply-side capacities necess ary in realizing potential gains from bilateral, 
regional and multilateral trade agreements.
21   
29. The United Nations Development Programme (UND P) continues to develop the idea of an 
Aid-for-Trade knowledge network and discussions are ongoing with regard to how to get the network 
up and running.22   
VI. PRIVATE SECTOR 
30. The ITC is continuing to promote the role of small- and medium-sized enterprises and 
micro-enterprises within the Aid-for-T rade initiative.  Its strategy in this respect focuses on engaging 
the private sector in Aid for Trade at regional even ts as well as on engaging them at an operational 
level through its technical assistance activities aimed at building institutional capacity and enterprise 
competitiveness for exports.23   
__________  
                                                      
20 Further information on the DEO can be found at http://www.iadb.org/projects/deo.cfm .  More 
information on IaDB's Ai d-for-Trade related activities can be found at 
http://www.iadb.org/topics/trade/int/index.cfm?artid=6901&lang=en  . 
21 Further information on UNECA's Aid-for-Trade related activities can be found at 
http://www.u neca.org .   
22 Further information on UNDP's Aid-for-Trade related activities can be found at 
http://www.undp.org/capacity/aid.shtml .   
23 Information on ITC's Aid-for-Trade related activities can be found at 
http://www.intracen.org/AidforTrade/ .