WORLD TRADE  
ORGANIZATION  WT/COMTD/AFT/W/14 
4 June 2009 
 
 (09-2681) 
Committee on Trade and Development 
Aid for Trade Original:   English 
 
 
  
JOINT WTO/OECD BACKGROUND PAPER ON AID FOR TRADE 
 
ASEAN 
 
HIGH LEVEL MEETING 
 
THE GLOBAL FINANCIAL CRISIS, EXPORT-LED GROWTH AND AID FOR TRADE: 
FOCUS ON THE ASEAN EXPERIENCE 
 
28-29 MAY 2009 - SIEM REAP, CAMBODIA 
 
  The attached background paper Aid for Trad e is being circulated to delegations for 
information.  It was jointly prepared by the World Trade Organization and the Organisation for 
Economic Co-operation and Development for the ASEAN High-Level Meeti ng "Global Financial 
Crisis, Export-Led Growth and Aid for Trade:  Focus on the ASEAN Experience" that took place in Siem Reap, Cambodia on 28 and 29 May 2009.   
_______________ 
   
   WT/COMTD/AFT/W/14 
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JOINT WTO/OECD BACKGROUND PAPER ON AID FOR TRADE 
 
ASEAN 
 
HIGH LEVEL MEETING 
 
THE GLOBAL FINANCIAL CRISIS, EXPORT-LED GROWTH AND AID FOR TRADE: 
FOCUS ON THE ASEAN EXPERIENCE 
 
28-29 MAY 2009 - SIEM REAP, CAMBODIA 
 
I. OVERVIEW 
1. Aid-for-Trade aims to help developing count ries, particularly Least-Developed Countries 
(LDCs), to build the supply-side capacity and trade-rela ted infrastructure that they need to assist them 
to implement and benefit from WTO Agreements and more broadly to expand their trade.   
2. This background paper provides information on the Aid-for-Trade (AfT) initiative, the 
Roadmap (work plan) for 2009, the monitoring frame work used to track Aid for Trade, figures on 
global flows of Aid for Trade and Aid-for-Trade flows to the ASEAN countries.  It gives an overview of key messages emerging from the responses of  ASEAN countries to the joint WTO/OECD 
partner-country self-assessment questionnaire.  The paper also gives an overview of assistance 
provided by the WTO Secretariat in the area of trade policy and regulation to the ASEAN countries. 
II. BACKGROUND 
3. A new work programme on Aid for Trade w as agreed at the Hong Kong Ministerial 
Conference in December 2005 and operationalized by  a Task Force which reported in July 2006.
1  In 
2007, the WTO cooperated with the World Bank and regional development banks to hold three 
regional Aid-for-Trade reviews.  These review s took place in Lima, Peru on 13 and 14 September 
2007 for the Latin America and Caribbean region, in Manila, the Philippines on 19 and 20 September 
2007, for the Asia/Pacific region, and in Dar-es-Sa laam, Tanzania on 1 and 2 October 2007 for the 
Africa region.  The First Global Review and Debate of Aid for Trade, hosted by the WTO, was held 
on 19 to 21 November 2007.   
4. Themes emerging from the First Global Aid-for-T rade Review were the need to encourage 
greater developing-country ownership of the initiative , to strengthen monitoring and evaluation and to 
shift the focus on the initiative from awareness-raising to implementation.   
5. On 6 and 7 July 2009, the Second Global Review of Aid for Trade will be held at the WTO 
Headquarters in Geneva, Switzerland.  The Revi ew will evaluate progress made since the First 
Review in 2007 and scrutinize how Aid for Trade is  being operationalized on the ground.  Progress in 
                                                      
1 WT/AFT/1. WT/COMTD/AFT/W/14 
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  securing additional financing will be discussed an d views exchanged on how aid flows can be 
maintained against the backdrop of a global recession.  The impact of the financial crisis on the real economy, together with declining commodity prices,  drying up of trade finance and the inability to 
conclude the Doha Development Agenda, risk je opardizing the contribution of trade to economic 
growth and poverty reduction in developing countries .  A shortfall in financial flows to developing 
countries is a real possibility an d developed country demand for the commodities on which much of 
their recent growth was based is declining. Comb ined with a dependency on tariff revenues, these 
developments will render budgets vul nerable to potential reductions in trade flows. In this less 
hospitable environment, aid for trade is even more critical to:  
• unlock the growth potential of low income count ries hindered by insufficient supply capacity or 
specific constraints; 
• reduce trading costs within regions and with globa l markets to stimulate the supply-side response 
of low-income countries.  
Central to this process is the examination of the conclusions emanating from the framework which has 
been put in place to monitor Aid for Trade – a ke y objective of the Aid for Trade Roadmap for 2009. 
ASIAN-PACIFIC REGIONAL REVIEW OF AID FOR TRADE (MANILA, PHILIPPINES 
SEPTEMBER 2007): RECOMMENDATIONS FOR ASEAN COUNTRIES 
 
Regional Cooperation and Integration (RCI) was singled out by most participants as an integral part of 
the initiative, and one that can he lp guide funding priorities. It  was recognised that through RCI, 
countries can (i) better enhance regional and sub- regional cross-border infrastructure and related 
services; (ii) promote trade and investment; (iii) deve lop monetary and financia l integration; and (iv) 
establish regional public goods such as preventi on of communicable diseases and environmental 
degradation. 
 It was recommended to form a technical working group, consisting of senior technical-level representatives of recipient countries, bilateral don ors, and regional and multilateral institutions. The 
Group's main tasks would be to (i) synthesize sub- regional/country needs and priorities, (ii) identify 
on-going assistance programmes, and (iii) develop an integrated approach that would effectively 
operationalize Aid-for-Trade for the medium term in  Asia and the Pacific. This technical working 
group was formed in early 2008 and has become opera tional.  The Asian Deve lopment Bank (ADB) is 
a member of the regional technical group and coordinates its work.  
Suggestions for moving the Aid-for-Trade initiative forward includes actions to better define and 
identify trade-related needs and requirements in Asia  and the Pacific, with the aim of producing a 
proposal on how to implement Aid-for-Trade across the region and to better share knowledge in this 
area. An update will be provided by ADB at the 2009 Global Review of Aid for Trade. 
 
III. MONITORING AND EVALUATION 
6. A big challenge the development community faces in  relation to aid for trade is to improve its 
effectiveness.  As highlighted by OECD studies,  little robust research has been undertaken about the 
impact and effectiveness of Aid-for-Trade progra mmes.  In part this is due to the absence of 
monitoring and evaluation frameworks.  To enhance th e credibility of Aid for Trade and to ensure that 
locally identified needs – whether financial or  performance related – are properly addressed, the 
Aid-for-Trade Task Force recommended to  establish two accountability mechanisms:   WT/COMTD/AFT/W/14 
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  • at the local level, to foster genuine local owne rship and ensure that trade needs are adequately 
addressed and integrated into natio nal development strategies; and  
• at the global level, to increase transparency a bout what is happening, what is not and where 
improvements are required. 
7. Against this background, the OECD and the WT O have set up an aid for trade monitoring 
framework. The objective of the monitoring framework  is to promote dialogue and encourage all key 
actors to honour commitments, meet local needs,  improve effectiveness, and reinforce mutual 
accountability.  The value of the new monitoring syst em lies in creating incentives, through enhanced 
transparency, scrutiny and dialogue ( i.e. putting a ‘spotlight’ on progress), to foster synergies between 
trade and other economic policy areas in developing  countries.  This, in turn, should improve the 
coherence of aid for trade with overall aid strate gies and donor agencies – essential components of an 
effective aid-for-trade partnership between donor s and partner countries as embodied in the Paris 
Declaration on Aid Effectiveness. In short, the fo cus on local accountability will provide incentives to 
strengthen local ownership and mana gement for results.  Periodic global reviews of aid for trade, on 
the other hand, will ensure that donor and partner co untries’ efforts are focu sed on the needs identified 
through local accountability mechanism. 
Figure 1:  Monitoring and Evaluation Framework 
Donor self-
assessments
Global AfT flows
Performance indicators
Qualitative  Qualitative  
analysisanalysis
Quantitative Quantitative 
analysesanalyses
Global Aid for 
Trade Review
Partner self-
assessmentMonitoring and Evaluation FrameworkMonitoring and Evaluation Framework
 
8. As illustrated in Figure 1, above, the Monitori ng and Evaluation framework for Aid for Trade 
operates at four levels:  
• global analysis of Aid-for-Trade flows (usi ng data extracted from the OECD Creditor 
Reporting Database or CRS) to assess where r esources are being delivered, to identify where 
gaps lie, to highlight where improvements shoul d be made, and to increase transparency on 
pledges and disbursements;  
• evaluations of national, regional and multilate ral donors' Aid-for-Trade activities (based on 
donor self-assessments), to ensure the dissemination of best practices across countries, to identify areas for improvement, and to increase  transparency on pledges, commitments and 
disbursements;  WT/COMTD/AFT/W/14 
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  • country-based monitoring and evaluation (based on partner-country (recipient) 
self-assessments) to provide a more focused, c ountry-specific perspective on whether trade is 
being mainstreamed into national development policy, trade needs are being met, financial 
resources are being provided, and Aid for Trade is effective on the ground; and 
• the use of indicators to track the use and effec tiveness of Aid for Trade, in particular against 
priority areas identified by recipients in their self-assessment questionnaires.  
9. At the First Global Review in November 2007,  the OECD and WTO published a joint report 
entitled "Aid-for-Trade At-a-Glance 2007: 1
st Global Review" which surveyed trends and 
developments in aid flows in the period 2002- 2005.  The report established a benchmark against 
which future assistance could be measured in categor ies most closely related to Aid for Trade.  In 
preparation for the Second Global Review, the OE CD and WTO will publish a 2009 report on Aid for 
Trade.   
Table 1:  Global Aid-for-Trade Commitments (in constant 2006 US$ millions) 
 
 2002-2005 
baseline 2006 2007 Increase vis-à-
vis baseline 
Trade related 
infrastructure 11,901 13,281 14,499 21.8% 
Building productive capacity 9,823 10,735 11,824 20.4% 
Trade policy and regulations 705 1,129 741 5.2% 
Trade-related adjustment - - 20 - 
Aid for Trade total 22,430 25,144 27,084 20.7% 
Source : OECD Creditor Reporting System 
10. Table 1 lists data reported to the OECD CRS on Global Aid-for-Trade commitments between 
2002-2007.  The statistics show that Aid for Trade gr ew in real terms by approximately 20 per cent 
compared to the 2002 – 2005 baseline.  Furthermor e, from table 4 & 5 below, it is clear that an 
increasing volume of aid resources is directed to investment in infrastructure projects and building 
productive capacity. 
11. Due to the time needed for in -depth reporting on aid flows,  the OECD CRS database does not 
capture any impact that the current financial cris is may have had on Aid-for-Trade flows in 2009.  
The impact of the current worsening global economic outlook will be a central issue for discussion at 
the Second Global Review of Aid-for-Trade on 6 and 7 July 2009.   
12. In December 2008, the WTO and OECD circul ated self-assessment questionnaires to donors 
and partner countries.  Significant changes were  made to the questionnaire to make it more 
user-friendly.  By 6 March 2009 deadline, a tota l of 83 replies had been received from partner 
countries (with 6 received from ASEAN countries, including 3 from LDCs) and 50 replies from 
donors (both bilateral and multilateral).2  In addition, three countries completed a questionnaire on 
South-South co-operation.   
                                                      
2 Cambodia, Indonesia, Lao PDR, My anmar, Philippines and Viet Nam.  WT/COMTD/AFT/W/14 
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  13. A Symposium on Monitoring and Evaluation of Aid-for-Trade was held on 15 and 
16 September 2008 to help identify and assess suitable Aid-for-Trade indicators.  Work is on-going 
on the design of Aid-for-Trade indicators.  R esponses to the AfT partner-country self-assessment 
questionnaires will be used to help focus indicators on partner countries' priorities for Aid for Trade.  
Work on indicators will be presented as part of the joint OECD/WTO Aid-for-Trade At-a-Glance 
publication. 
Figure 2:  Global distribution of Aid-for-Trade 2002-2007 
Commitments, US$ billion (2007 constant) 
 
 
 
Source : OECD Creditor Reporting System 
 
IV. AID FOR TRADE AND ASEAN COUNTRIES 
A. AID-FOR-TRADE ASSISTANCE (2002-2007) 
14. Table 2 presents aggregate data on Aid-for-Trade  flows to the ASEAN countries, as reported 
to the OECD CRS database.3 It shows considerable disparities in the volumes of Aid for Trade 
                                                      
3 The OECD/DAC Creditor Reporting System (CRS) aid activity database collects information on 
ODA – i.e. grants or loans to developing countries and to  multilateral agencies which are: (a) undertaken by the 
official sector; (b) with promotion of economic deve lopment 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. The aid activity data derives from donors, including the 22 member 
countries of the OECD’s Development Assistance Committee (DAC), the European Commission and other 
international organisations, e.g. the Asian Development Bank.  
Following the recommendations of the WTO Task Fo rce on Aid for Trade, the WTO members decided 
to use the CRS database to monitor Aid for Trade commi tments and disbursements. Although the CRS is the 
best data source for tracking Aid for Trade flows at global level, it cannot provide data that matches exactly all the categories of Aid for Trade defined by the Task Fo rce. Instead, the CRS offers proxy measures for key 
categories. WT/COMTD/AFT/W/14 
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  received by countries. In 2007, Aid-for-Trade commitments to Myanmar totalled US$8 million, 
compared to 1,759 million to Viet Nam.  Aid for Trade as a percentage of total sector allocable aid 
received also varied considerably between countri es, from 6% in Myanmar to 61% in Vietnam.  
Table 3 shows that in 2006-2007, Viet Nam and Indonesia were the 3rd and 5
th largest recipients of 
Aid for Trade globally. As a whole, Aid for Trade to ASEAN countries dropped 8%, from 
US$3.4 billion to US$3.1 billion. 
Table 2: Aid- for-Trade and ASEAN Countries 
 
 Commitments in US$ millions Disbursements in US$ 
millions Aid for Trade as 
percentage of total 
sector allocable aid 
 2002-2005 2007 2007 2007 
Cambodia 176.4 156.0 105.1 33% 
Indonesia 989.7 791.8 613.4 36% 
Lao PDR 122.7 112.1 99.3 45% 
Malaysia 11.2 31.4 222.3 47% 
Myanmar 9.8 8.1 10.1 6% 
Philippines 312.1 210.3 616.2 30% 
Thailand 320.9 47.8 127.8 30% 
Viet Nam 1,426.6 1,758.8 736.9 61% 
Source : OECD Creditor Reporting System 
  WT/COMTD/AFT/W/14 
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  Table 3:  Top 20 Recipients of Aid for Trade (2006-2007 average) 
 
COMMITMENTS, US$ MILLION (2006 CONSTANT) 
 
 Income 
Group 2002-2005 
average 2006-2007 
average Share of 
Total AfT Share of AfT in 
Total Sector 
Allocable ODA ODA/GNI 
(2007) 
India OLIC 1,352.3 1,743.2 7.1 35.9 0.11 
Iraq LMIC 1,979.2 1,586.4 6.5 37.8 .. 
Viet Nam OLC 1,426.6 1,414.0 5.8 56.0 3.58 
Afghanistan LDC 665.0 1,254.7 5.1 40.4 33.86 
Indonesia LMIC 986.9 793.5 3.2 34.4 0.19 
Ethiopia LDC 485.1 734.5 3.0 32.1 12.48 
Egypt LMIC 518.5 585.6 2.4 49.2 0.84 
Bangladesh LDC 642.1 557.8 2.3 29.7 2.06 
Kenya OLIC 300.0 514.5 2.1 31.3 4.31 
China LMIC 695.4 438.2 1.8 17.7 0.04 
Ghana OLIC 235.6 437.1 1.8 40.2 7.59 
Uganda LDC 221.2 373.1 1.5 34.4 15.72 
Mali LDC 159.5 366.5 1.5 45.6 15.43 
Pakistan OLIC 345.8 365.3 1.5 24.6 1.51 
Morocco LMIC 280.6 349.2 1.4 30.0 1.51 
Mozambique LDC 284.2 341.1 1.4 29.1 26.33 
Tanzania LDC 324.2 305.6 1.2 23.4 17.43 
Sri Lanka LMIC 410.9 283.4 1.2 46.9 1.84 
Serbia LMIC 372.4 242.0 1.0 27.8 2.04 
Turkey UMIC 404.7 214.5 0.9 22.8 0.12 
 
15. Table 4 highlights that in 2007, ASEAN countries as a whole received less Aid-for-Trade in 
the area of Trade Policy and Regulations, but twice as much for Economic Infrastructure Aid for 
Trade when compared to the amount received for Bu ilding Productive Capacity Aid for Trade. This 
happened despite a 12% drop in Economic Infrastru cture Aid for Trade between 2002-05 and 2007, 
from US$2.3 billion to US$2.0 billion, and a 1% in crease in Building Productive Capacity Aid for 
Trade.  
16. Globally, Viet Nam was the second largest recipi ent of Aid for Trade in 2007, with total 
commitments worth US$1.7 billion, placing Viet Nam only behind India.  That same year, Viet Nam 
received more than half (56%) of all Aid for Trade to ASEAN countries, three quarters of it coming in Economic Infrastructure. Hence, the distribution by sub-category of Aid for Trade to ASEAN countries as a whole is highly influenced by Aid for Trade flows to Viet Nam alone.  Excluding Viet Nam from the sub-category totals results in a much smaller difference between the volume of 
Aid for Trade to the two main sub-categories, with Economic Infrastructure totalling US$713 million 
and Building Productive Capacity  totalling US$612 million.  
17. Besides Viet Nam, two other ASEAN countries also received in 2007 more Aid for Trade in 
Economic Infrastructure than in Building Produc tive Capacity: Cambodia (70%) and Indonesia 
(65%).  This means that, although ASEAN countries as a group received more Aid for Trade in Economic Infrastructure than in Building Productive Cap acity, individually, a majority of countries (5 
out of 8: Laos, Malaysia, Myanmar, Philippines, Thailand) received more Aid for Trade in Building 
Productive Capacity than in Economic Infrastructure,  with the share of the former ranging from 91% 
for Malaysia and 76% for the Philippines. WT/COMTD/AFT/W/14 
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  Table 4: Aid-for-Trade volumes for Trade Polic y & Regulations, Economic Infrastructure and 
Building Productive Capacity  
  Trade Policy &  Economic Building Productive Total 
  Regulations Infrastructure Capacity     
  2002-05 2007 2002-05 2007 2002-05 2007 2002-05 2007 
        Volume Share 
Total AfT   Volume Share 
Total AfT    
Cambodia 4.2 0.7 100.8 108.5 69.5 71.5 46.8 30.0 176.4 156.0 
Indonesia 8.3 12.7 739.6 515.9 65.1 241.8 263.3 33.2 989.7 791.8 
Laos 0.6 7.0 68.2 31.4 28.0 53.9 73.7 65.7 122.7 112.1 
Malaysia 0.9 0.6 2.1 2.4 7.5 8.2 28.4 90.5 11.2 31.4 
Myanmar 0.1 0.1 2.0 1.4 17.4 7.7 6.5 80.8 9.8 8.1 
Philippines 3.0 11.1 203.6 45.9 21.8 105.5 153.3 72.9 312.1 210.3 
Thailand 3.4 0.6 269.4 7.3 15.4 48.0 39.8 83.3 320.9 47.8 
Viet Nam 10.6 18.1 945.6 1,334.5 75.9 470.4 406.1 23.1 1,426.6 1,758.8 
    Sub-Total 31.1 51.0 2,331.3 2,047.3 65.7 1,006.9 1,017.8 32.7 3,369.3 3,116.2 
Far East Asia, regional* 12.0 7.5 1.9 6.1 16.2 7.0 24.0 63.9 20.9 37.5 
*(All-Myanmar)+China+Korea+Mongolia+Timor Leste 
 
B. MONITORING AID FOR TRADE FOR ASEAN COUNTRIES  
18. Six ASEAN countries replied to the joint WTO/OECD partner-country self-assessment 
questionnaire (Cambodia, Indonesia, Lao PDR, Myanmar, Philippines4 and Viet Nam). Five 
respondents indicated that trade is a key priority in  their respective national development plans, which 
include well developed trade-related priorities and implementation actions.5  Of the six respondents, 
three are Least Developed Countries (Cambodia, Lao PDR and Myanmar). 
19. Cambodia stated that the Integrated Framewor k Diagnostic Trade Integration Study (DTIS) 
and accompanying action matrix reflect their country's  trade related needs and Government priorities. 
Myanmar and Lao PDR, on the other hand, reflected  that the DTIS and accompanying action matrix 
only partly  reflected their Government priorities and trade related needs.   
20. The WTO/OECD self-assessment questionnaire requested partner countries to identify 
priority areas of intervention to improve capacity to  benefit from trade expans ion and integration into 
the world economy.  Partner countries were asked to identify three priority areas among 12 different options under the broad headings for trade policy and regulation, economic infrastructure, building 
productive capacity and other priorities.  Table 5 outlines the top three priority areas listed by the six 
ASEAN respondents to the questionnaire.  
                                                     
 
4 The Philippines specifically mentioned their Medi um Term Philippine Development Plan (MTPDP) 
2004-2010 and the Philippine Export Development Plan (PEDP) 2008-2010 as other strategies that include trade 
as a lever for growth and povert y reduction. Both plans can be accessed at http://www .neda.gov.ph and 
http://www.philexport.ph. 
5 Lao PDR was the exception, stating that their national development plan mentions trade but does not 
include operational objectives and action plans.  WT/COMTD/AFT/W/14 
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  Table 5:  Aid-for-Trade Priority Areas fo r Cambodia, Indonesia, Lao PDR, Myanmar, 
Philippines, Viet Nam 
 
 Priority 1 Priori ty 2 Priority 3 
Cambodia Trade Facilitation Export Diversification Trade Policy Analysis, 
Negotiation and 
Implementation 
Indonesia Trade Facilitation Competitiveness Network infrastructure 
(power, water, telecom) 
Lao PDR6 N/A N/A N/A 
Myanmar Export Diversification Trade Facilitation Trade Policy Analysis, 
Negotiation and Implementation 
Philippines Competitiveness Network infrastructure 
(power, water, telecom) Adjustment Costs 
Viet Nam Trade Policy Analysis, 
Negotiation and 
Implementation Trade Facilitation Competitiveness 
Source:  WTO/OECD Self-Assessment Replies 
 
21. The WTO/OECD partner-country self-assessment questionnaire examines how trade capacity 
constraints are addressed at regional level through na tional trade strategies.  All six respondents noted 
that they participated in regiona l integration processes.  In Cambodia's reply, special mention was 
made of the Trade Sector-Wide Approach (Trade SWAp) which sets out the operational strategy of 
the Government's priority areas and seeks to st rengthen Government leadership over the use and 
management of Technical Assistance resources.  
22. Examples of Aid-for-Trade processes, progr ammes or projects which constituted good 
practice were given by Cambodia, Indonesia and Viet Nam.  Indonesia singled out the EC-funded 
Trade Support Program (TSP) as an example of good practice7, while Viet Nam cited the MUTRAP 
Project and the ''Beyond WTO program'' as having ha d good results in trade policy formulation and 
trade practices at national, provincial and enterpri se level.  Lao PDR identified Regional Integration, 
Competitiveness and Trade Policy as areas where aid for trade has been most effective at raising trade 
capacity. Viet Nam also identified Trade facilit ation, Trade Policy Analysis negotiation and 
Implementation, as well as Competitiveness of Goods a nd Services as the three areas in which aid for 
trade has been most effective in raising trade capacity 
23. Cambodia referred to the preparation of the DTIS 2007, the preparation of the EIF Tier 1 
proposal, organisation of the Trade SWAp project and the creation of the Ministry of Commerce 
website as good practise. Cambodia also stated that the three areas in which aid for trade has been 
most effective in raising trade capacity were: 
• WTO Accession process 
• Custom Reform (using the Automated System for Customs Data (ASYCUDA) process); and 
• Export Development 
                                                      
6 More than three  priority areas were listed an d there was no categorisation of priorities in the 
questionnaire reply of Lao PDR. 
7 Funded by the European Union. WT/COMTD/AFT/W/14 
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  24. Partner countries were also requested to identify priority areas in which the implementation of 
and effectiveness of Aid for Trade received could be  improved.  Table 6 below gives an overview of 
the responses.  From the table, it is clear that  a greater say in the design of Aid-for-Trade 
interventions, stronger donor focus on local cap acity development and better predictability of 
Aid-for-Trade funding are the main priorities for the six respondent countries. 
Table 6:  Priority Areas to improve implementa tion and effectiveness of Aid for Trade received. 
 
 CAMBODIA Indonesia  Lao PDR  Myanmar  Philippines  Viet Nam  
Greater say in design of 
AfT X  X X X X 
Stronger donor focus on 
local capacity development  X X X X X 
Better predictability of AfT 
funding    X X  
More extensive use of 
Budget Support X X     
More regular joint-donor 
implementation actions      X 
More harmonized reporting 
requirements       
More frequent joint donor-
partner implementation 
efforts  X X    
More systematic use of 
joint donor-partner 
monitoring/ evaluation X      
Source : WTO/OECD Self-Assessment Replies 
 
25. For the six ASEAN countries which replied to the partner-country self-assessment 
questionnaire, indicators on Aid for Trade will be presented as part of the joint OECD/WTO Aid-for-Trade At-a-Glance publication.  The indicat ors will be tailored to reflect each country's own 
priorities.  
26. Another instrument that can be used to eval uate Aid for Trade is the Trade Policy Review 
Mechanism.  One of the conclusions of the Aid- for-Trade Task Force in July 2006 was that an 
assessment of Aid for Trade should be included in the WTO Trade Policy Reviews. 
V. AID FOR TRADE PROVIDED BY ASIAN DEVELOPMENT BANK   
27. In pursuing its vision of a poverty-free Asia and the Pacific, the Asian Development Bank 
provides loans, technical assistance, grants, advice,  and knowledge-sharing to its developing member 
countries. Under Strategy 2020, an overarching stra tegic framework adopted in 2008, ADB follows  WT/COMTD/AFT/W/14 
 Page 13 
 
 
  three complementary agendas in its developmen t projects in the region: inclusive growth, 
environmentally sustainable growth, and regional integration.8  
28. ADB’s Aid for Trade for ASEAN is targeted a nd exhibits regional cooperation as a strategic 
development theme. It takes the form of financia l and technical assistance on infrastructure and trade 
facilitation projects, and capacity- building and coordination with regi onal partners, particularly the 
ASEAN Secretariat.  
29. Data on financing for projects in ASEAN are listed below (see Table 7). Total assistance was 
US$1.8 billion in 2006 and jumped to US$2.5 billion in 2008.  
Table 7: ADB ADF and OCR Financing Provided in ASEAN 2006-2008, US$ MN 
 
 2006 2007 2008 
DMC  ADF 
total OCR Grand 
Total ADF 
total OCR Grand 
Total ADF 
total OCR Grand 
Total 
          
Cambodia 27.80 - 27.80 57.10 - 57.10 84.10 - 84.10 
Indonesia 109.80 600.00 709.80 50.00 900.00 950.00 160.00 850.00 1010.00 
Lao PDR 51.56 - 51.56 18.00 - 18.00 - - - 
Philippines - 650.00 650.00 - 583.80 583.80 - 620.00 620.00 
Viet Nam 268.19 - 268.19 240.00 47.90 287.90 148.50 606.20 754.70 
Regional  102.00 - 102.00 309.00 896.00 1205.00 20.00 - 20.00 
          
TOTAL 559.35 1250.00 1809.35 674.10 2427.70 3101.80 412.60 2076.20 2488.80 
Notes :  ADF refers to the Asian Development Fund, which are earm arked for long-term interest free loans, grants, and policy 
assistance to the poorest countries in Asia; OCR refers to ordi nary capital resources; Grand Total column = ADF total plus 
OCR.  
 
Source :  ADB Southeast Asia Department . 
 
30. Highlights of key ADB Aid for Trade-related projects in ASEAN are discussed below and 
include a range of support from financial and techni cal assistance in infrastructure development, trade 
facilitation to capacity building and institutional support.  
31. Greater Mekong Subregion (GMS) Program . Started in 1992, the GMS Program is one of 
ADB’s flagship programs supporting trade and ec onomic development in ASEAN’s underdeveloped 
subregions comprising Cambodia, the People's Repub lic of China, Lao PDR, Myanmar, Thailand, and 
Viet Nam. It focuses on the financing and tec hnical support of subregional projects across many 
sectors including transport and trade.  As of the end of 2008, the 41 GMS projects cost an estimated 
US$11 billion of which ADB has: (i) Extended lo ans amounting to US$3.8 billion; (ii) Generated 
US$4 billion in co-financing for these investment  projects; and (iii): mobilized a total of 
US$208 million of grant resources, of which US$94.1 million have been provided by ADB, to finance 
179 technical assistance projects. 
32. GMS Infrastructure Development. An integral part of the GMS program is the building of 
priority "economic corridors"— a signature appr oach to regional development based on linking 
infrastructure design to production and trade pot entials to maximize economic benefits from 
                                                      
8 ADB's OCR operation do not fall within the scope of the Aid for Trade definition used by the OECD 
CRS.  Data reported in table 7 does not therefore necessarily reconcile with that reported in tables 2, 3 and 4 
which use the OECD CRS as the basis for reporting.  WT/COMTD/AFT/W/14 
Page 14  
 
  infrastructure investments. The bank envisions a GMS subregion that is covered by grids and rings of 
economic corridors, integrati ng and interconnecting dynamic ma rkets and production centers.  
Infrastructure development is a key facet of bu ilding economic corridors. Priority infrastructure 
projects worth around US$10 billion have either been  completed or are being implemented. Among 
these priority corridors are the upgrading of the Phnom Penh (Cambodia)-Ho Chi Minh City 
(Viet Nam) highway and the East-West Economic Co rridor that will eventually extend from the 
Andaman Sea to Da Nang (see Box 1). 
Box 1: GMS Economic Corridors 
Case Study 1: Phnom Penh – Ho Chi Minh City Highway   
Financed by an ADB loan approved in 1998 of US$140 million (US$40 million for Cambodia and 
US$100 million for Viet Nam – with the governments of the two countries providing the rest of the 
combined total project cost of $197 million), the pr oject involved the reconstruction of 105 kilometers 
(km) of Route Number 1 (RN1) in Cambodia from N eak Leoung to the border with Viet Nam at Bavet, 
including minor improvements to other transport sections. The PP-HCMC Highway represented the primary segment of the GMS Southern Economic Co rridor linking Thailand, Cambodia, and Viet Nam. 
The total value of trade passing through the Bavet/M oc Bai border crossing post increased by about 41% 
per annum between 2003 and 2006. The number of peopl e crossing the border increased at an average 
annual rate of 53% during the same period while th e number of vehicles crossing the border increased at 
an average annual rate of 38%. Travel time from P hnom Penh to Bavet has been reduced by 30%. Along 
RN1, there has been substantial ribbon development,  including residences, buildings, and shops. At the 
Bavet border post, the increase in both passenger a nd goods traffic from Viet Nam has led to the 
establishment of commercial and leisure facilities, incl uding several casinos and hotels that attract large 
numbers of tourists. Ancillary services, such as rest aurants and gas stations, have likewise mushroomed 
along the road. An industrial park close to Bavet has also opened, providing employment opportunities 
for the local residents. New industria l areas have also been built near  the project roads. One of these 
industrial areas employs over 10,000 people and is planning to expand its activities in a new site. 
Case Study 2: East −West Transport Corridor Project 
This is the second major GMS subregional transport project, which seeks to improve the central corridor 
linking Da Nang in Viet Nam with Tak in Myanmar— expanding the market for transit and bilateral trade 
among three countries—Thailand, Viet Nam and Lao PDR. Objectives include: i) Reconstructing an 
83 kilometers (km) highway between the Thaila nd and Lao PDR border and Dong Ha (the National 
Highway 9); (ii) Rehabilitating a 105.8 km Dans avanh (Lao PDR) and La o Bao (Viet Nam) border 
crossing (Route National 9); and (iii) Mitigating nonph ysical barriers to the movement of goods and 
people across borders. The immediate impact of infr astructure development has been dramatic. Average 
vehicle speeds increased and averag e travel time from Kaysone Phomvi hane to Dansavanh dropped from 
10–12 hours to 4 hours, while that from Dong Ha to  Lao Bao was cut in half. On both sides, border 
clearance time has improved. Average trade value th rough Lao Bao has escalated and crossing trade value 
peaked at US$148.5 million in 2007. Industrial estates  are developing in Lao Ba o and Dong Ha and more 
such ‘boom towns’ are being planned. Increased connec tivity has also led to an expansion of tourism and 
services sector, which account for a major part of incr eased traffic between Thailand and Lao PDR. The 
movement of people has increased significantly from around 95,000 in 2000–2001 to almost 274,000 in 2007. The project also features a feeder road compone nt to enable Route National 9 improvements that 
will connect once isolated communities— from the Lao PDR to the hinterlands of Kaysone Phomvihane 
Province— and alleviate poverty along the corrido r. These access roads now cover about 101 villages 
with a population of about 45,513, linking peop le and communities and bolstering livelihoods.  
  WT/COMTD/AFT/W/14 
 Page 15 
 
 
  33. GMS Trade Facilitation: Cross-Border Trade Agreements (CBTA). Other interventions 
are still needed to fully catalyze the transfor mation of the economic corridors from rudimentary 
transport corridors to multidimensional and dynamic economic corridors. While the weight on physical connectivity has been adequate, the re lative supporting “software” has been slower to 
develop. Sparking this transformation will depend la rgely on the implementation of the “Agreement 
for Facilitation of the Cross-Border Transpor t of Goods and People in the Greater Mekong 
Subregion”, expected in 2010. The CBTA is a mu ltilateral instrument for the facilitation of cross-
border transport of goods and people.  It consists of assistance on formulating the basic framework of a 
model agreement for future development of bilate ral and multilateral agreements, as well as capacity-
building and training through country  workshops. Part of the CBTA is also the facilitation of special 
economic zones, roadside service facilities,  and other complementary infrastructure—
telecommunications, electricity. ADB is taking th e lead by providing a technical assistance for 
building capacity to develop a Savan–Xeno special economic zone near Kaysone Phomvihane in the 
Lao PDR.  
34. ADB is working with GMS governments through  technical assistance and through policy 
dialogue for its expedient ratification by all six co untries of the CBTA's annexes and protocols, as 
well as the full implementation of the CBTA in 2010. While all the countries have signed the CBTA, ratification of the annexes and protocols are still at various stages of ratification. Initial 
implementation of the CBTA has successfully started at the Lao Bao–Dansavanh, Mukdahan–
Kaysone Phomvihane, and Hekou–Lao Cai border-crossing points.  
35. Export Promotion in ASEAN.  ADB has several ongoing programs in the Mekong region 
assisting governments in mainstreaming trade with in their economic policy frameworks and providing 
capacity development support to do so. Two noteworth y programs in the context of Aid for Trade 
include:  (i) The Promoting Economic Diversificat ion Program launched in Cambodia in December 
2008 is a program cluster comprising of three s ubprogram loans amounting to a total of US$50million 
over the period 2008-2012. The Program  covers trade policy formulation, assisting with implementing 
WTO commitments, competition policy and trade facilitation. Also, part of the program is a 
US$800,000 grant for enhancing private sector  competitiveness and a US$2 million grant for 
strengthening sanitary and phyto-sanitary standards.  
36. The Private Sector and SME Development Program was implemented in Lao PDR in 
October 2007. It consists of a cluster of two su bprogram grants amounting to US$ 10 million and 
covers SMEs, investment climate and trade. Att ached to the Program is a US$ 500,000 grant funded 
under the Japan Special Resources fund. Under the Pr ogram, efforts have been made to reform the 
import management system to complement Lao’s WTO accession efforts. Substantial capacity building was also provided, which included assisting staff at the Ministry of Industry and Commerce 
with estimating effectives rates of protection and assessing its WTO tariff offers. 
37. Institutional Support for ASEAN Secretariat. ADB has worked closely with the ASEAN 
Secretariat by providing technical assistance on strengthening institutional capacity on regional 
economic integration. Support has taken several forms: (i) ADB has provided support through 
research and studies— such as macroeconomic surve illance reports, policy issue papers presented at 
the East Asia Summit, ASEAN Finance Ministers Meetings, as well as background and working papers on free trade agreements, liberalization of trade in services and priority integration sectors. 
(ii) ADB is also an active presence in ASEAN’s inte gration initiatives, including providing inputs in 
the drafting of the plan and implementation sco recards for the ASEAN Economic Community (AEC 
2015). It has also supported human resource developmen t in the Secretariat through training, seminars 
and consultation meetings for A SEAN staff. (iii) Finally, ADB supports ASEAN's technological 
capacity through support for the ASEAN Economic In tegration Website and Information Systems, 
which supports better knowledge exchange and information dissemination on ASEAN trade 
initiatives. WT/COMTD/AFT/W/14 
Page 16  
 
  VI. AID FOR TRADE PROVIDED BY WTO 
38. The WTO is not a financing agency, nor does it have any ambition to become one, but, in 
addition to its monitoring and advocacy role for Aid for Trade, WTO provides limited assistance in 
the area of trade policy and regulation through its Institute for Training and Technical Co-operation 
(ITTC), Trade Facilitation Technical Assistance for Na tional Self Assessments of Needs and Priorities 
and the Standards and Trade Development Facility.   
A. 
ITTC TRAINING FOR ASEAN COUNTRIES9 
39. The WTO Secretariat provided training across the breadth of the WTO's work programme, 
including aspects related to the on-going Doha Development Agenda negotiations.  Technical 
assistance is tailored to the specific demands of beneficiary countries.  Assessments are also 
undertaken to which subjects may contribute most to the strengthening of institutional and human 
capacity in trade-related matters in the recipient countries.   Training delivered by the WTO thus 
differs from country to country.  
40. The ASEAN economies have all benefite d from WTO technical cooperation and 
capacity building activities.  During the period 20 07-2009, Officials from ASEAN economies have 
participated in several WTO Regional Seminars a nd Training events, covering WTO-related subjects, 
the Uruguay Round Agreements and the DDA negotiating subjects.  Most of the requests since 2007 
have concentrated on the Doha Development Agenda  negotiating subjects, especially in the areas of 
Agriculture, Non-Agricultural Market  Access (NAMA) and Services.  
41. High-Level Consultations on the DDA negotiating issues for senior officials from the Asia 
Pacific region were also held in Bangkok  on 12-14 May 2009.  Officials have also benefited from 
training delivered through regular trade policy courses he ld either in Geneva or in Asia.  For several 
years, the Regional Trade Policy Courses (RTPCSs),  first in Hong Kong and now in Singapore, give 
support regionally, to the extent that the RTPCSs bu ild institutional partnershi ps at the regional level 
for capacity- building and facilitate the creati on of networks among academia.  Also the WTO 
encourages the use of e-Training and distance lear ning. Table 8 gives an overview of the activities 
conducted in ASEAN since 2007. 
Table 8: ITTC Technical Co-operation and Capacity-Building courses offered for ASEAN 
economies   
(2007 to present) 
Brunei Darussalam Cambodia Indonesia Lao PDR Malaysia Myanmar Philippines Singapore Thailand Viet Nam 
34 38 60 48 50 47 53 43 66 51 
 
B. TRADE FACILITATION  
42. The WTO Secretariat, in cooperation with partne r organizations and national governments, is 
providing technical assistance to help WTO Member and Observer countries to conduct a self 
assessment of needs and priorities in the WTO tr ade facilitation negotiations.  The goal of this 
program is to assist developing and least develope d countries to negotiate more effectively through 
enhanced understanding of the technical assistance and capacity building needs for implementation of 
the proposed measures. 
 
                                                      
9 For more information see http://www.wto.org/english/trat op_e/devel_e/teccop_e/ittc_e.htm .  WT/COMTD/AFT/W/14 
 Page 17 
 
 
  43. This technical assistance is funded through a sp ecial trust fund and is provided upon request.  
The status of requests from ASEAN members is outlined in table 9.  
 
Table 9: Trade Facilitation Need s Assessments for ASEAN countries 
 
Brunei Darussalam To be conducted in 2009 
Cambodia Completed October 20-24, 2008 
Indonesia To be conducted in 2009 
Lao PDR To be conducted in 2009 
Malaysia Completed April 13-17, 2009 
Myanmar (Burma) No request has been made 
Philippines Completed February 9-13, 2009 
Singapore No request has been made 
Thailand No request has been made 
Viet Nam Completed March10-14, 2008 
 
C. STANDARDS AND TRADE DEVELOPMENT FACILITY  
44. The Standards and Trade Development Fac ility (STDF) is a global partnership and 
programme of the Food and Agriculture Organi zation of the United Nations (FAO), the World 
Organization for Animal Health (OIE), the Worl d Bank, the World Health Organization (WHO) and 
the World Trade Organization (WTO).  It aims to as sist developing countries, and particularly LDCs, 
in enhancing their expertise and capacity to anal yze and implement sanitary and phytosanitary (SPS) 
standards, and to improve coordinatio n among providers of SPS assistance by inter alia  undertaking a 
wide range of awareness-raising, m obilization and dissemination activities. 10 
45. As part of its coordination role, the STDF organized a workshop on SPS needs and assistance 
in Cambodia, Lao PDR and Viet Nam on the margins of the Regional Review of Aid for Trade in the 
Philippines in September 2007.  This workshop was followed by a targeted event in Cambodia in 
May 2008 which was successful in raising the awar eness of SPS as a supply-side constraint within the 
Aid for Trade process, identifying SPS priority needs at national and regional level, and in further 
mobilizing resources to address those needs.  Co mplementing this work, the STDF presented an 
overview paper on SPS needs and assistance in eight LDCs, including Cambodia and Lao PDR, at the 
LDC Ministerial Conference on Aid for Trade in November 2008, jointly organized by the WTO, UNIDO and the Government of Cambodia. 
46. The STDF in close collaboration with FAO pres ently assists Cambodia in the development of 
an SPS Action Plan.  Recently, it also assisted Lao PDR in designing a project to establish the 
infrastructure to promote, train and certify produ cers of agricultural products in Good Agricultural 
Practices (GAP).  Funding for this project to talling US$370,000 is current ly being sought.  In 
February 2009, the STDF also approved a project to  strengthen the national GAP programme for fresh 
fruit and vegetables in the Philippines.  Implementati on of this project depends on the availability of 
an external donor to fund a complementary capacity building programme.  In 2007-08, the STDF 
provided funding to assist developing member ec onomies of the Asia Pacific Economic Cooperation 
(APEC) to train food safety regulators using FAO's food safety capacity evaluation tools.  Finally, the STDF currently helps the Government of Nepal to strengthen the capacity of government SPS 
officials through an extensive training programme.   
 
                                                     
 
10 The STDF is housed and administered by the WTO.  For more information see: 
www.standardsfacility.org . WT/COMTD/AFT/W/14 
Page 18  
 
  VII. CONCLUSIONS 
47. This paper provides a background briefing on Ai d for Trade for participants at the ASEAN 
Conference and sub-regional review of Aid for Trade.  It focuses on the six countries which 
responded to the joint WTO/OECD partner country self-assessment questionnaire.  
48. The replies of the six ASEAN countries which responded to the joint WTO/OECD 
partner-country self-assessment questionnaire (Cambodia, Indonesia, Lao PDR, Myanmar, 
Philippines, Viet Nam) are instructive in estab lishing priority areas for future Aid-for-Trade 
assistance, as well as for monitori ng the initiative at the country and regional level and identifying 
good practice in Aid for Trade.   
49. The High Level meeting in Siem Reap, Cambodia on 29 April 2009 should give a strong 
impetus to move from commitment to action in the ASEAN region.  Moving from commitment to 
action is a key objective for the Aid for Trade initiative in 2009.   
50. Conclusions arising from the ASEAN Aid for Trade meeting will feature prominently at the 
Second Global Review of Aid for Trade to be held on 6-7 July 2009.   
 
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