WORLD TRADE  
ORGANIZATION  WT/COMTD/AFT/W/3 
8 June 2007 
 (07-2405) 
Committee on Trade and Development 
Aid for Trade Original:   English 
 
 
 
AID FOR TRADE 
 
Communication from Egypt  
 
 
 The following communication, dated 6 June 2007, is being circulated at the request of the 
delegation of Egypt.   
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I. INTRODUCTION 
1. Paragraph 57 of the Hong Kong Ministerial Declar ation stipulated that Aid for Trade (AFT) 
should aim to help developing countries, partic ularly least-developed countries, to build the 
supply-side capacity and trade-related infrastructure that they need to assist them to implement and 
benefit from WTO Agreements and, more broadly,  to expand their trade.  Furthermore, the 
Declaration called for the creation of a Task Force to provide recommendations on how to 
operationalise AFT and how this might contribute most  effectively to the development dimension of 
the Doha Development Agenda. 
2. AFT should be a valuable and important comple ment but not a substitute for the development 
package of the Doha Round.  It is obvious that there are barriers other than foreign market access 
barriers that can impede export development.  These,  which include lack of supply side capacity and 
ability to compete into international markets, n eed to be adequately addressed through AFT.  
3. AFT should not be an empty promise for de veloping and least-developed countries, but 
should be a tool for them to enhance capacity bui lding, international competitiveness, institutional 
framework, infrastructure and, also, to help them in coping with the cost of trade liberalization.  In 
previous trade negotiations, "best endeavour" promises to provide assistance have often not 
materialized, leaving developing and least-develope d countries with no or limited assistance to adjust 
in order to be in position to implement their obligations.  
4. Egypt believes that delivering effective A FT is a mutual responsibility of Donors and 
Beneficiaries; each has an important role to play.  The optimal goal is crafting an effective, simple and 
practical Monitoring and Evaluation Mechanism with the aim of ensuring that the expected results of 
such initiative are being adequa tely met and implemented.  
5. As "National Ownership" is an important aspect,  it should exist at each and every step of the 
overall process of AFT.  This is not only to creat e a strong leadership and political will needed for 
underpinning effective trade devel opment strategy, but also to ensure that any development assistance 
is aligned with the nationa l development framework.  WT/COMTD/AFT/W/3 
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  II. ELEMENTS NEEDING FURTHER DISCUSSIONS  
6. Coming from that perspective and based on the proposal by the WTO Director General at the 
General Council meeting held in December 2006, Egyp t, by presenting this paper, is attempting to 
highlight some key elements that need to be taken in to consideration in the operationalization of AFT.  
(a) Needs Assessments  
The Aid for Trade to be provided should be on the basis of the request and needs of the 
requesting member. Developing and least-dev eloped country members requesting AFT could 
consult with the donors concerned and, particular ly development agencies to assist them when 
identifying their trade needs a nd priorities, and determining the AFT projects or programmes 
needed. 
(b) National Co-ordination  
There should be a national dialogue between stakeholders from both public and private 
sectors.  This national dialogue should aim at  developing a concrete  national development 
strategy based on the countries’ developmental a nd trade needs.  This strategy should include 
in its framework a continuous coordination m echanism among all stakeholders on the national 
level, spelling out the role of each of the involved governmental bodies as well as the private 
sector entities.    
(c) Mainstreaming of Trade into th e National Development Strategy 
It is within this context that "mainstreaming trade" needs to be addressed in the course of 
current discussions.  Mainstreaming trade into  a country's development strategy means 
determining the importance, prioritising and ma intaining a range of policies in order to 
enhance trade. 
Mainstreaming trade into overall national deve lopment plans and poverty reduction strategies 
has arisen as an issue of urgent necessity becau se, although trade liberalization and reform are 
necessary for generating resources and growth to  reduce poverty, they should be implemented 
along with complementary  policy areas (e.g. macroeconomic, regulatory and structural 
policies).  
Given the fact that developing and least developed countries need to raise their capacity to 
mainstream trade into their overall national de velopment strategies, it is essential that the 
discussions on AFT focus on addressing possible solutions to this problem.   
(d) National AFT Committee   
As provided in the Task Force recommenda tions (WT/AFT/1), a national AFT committee 
could be established.  This committee would be  considered the focal point for AFT on the 
national level.  It will determine country need s, set priorities, mainstream trade into the 
national development strategies, and re port to the WTO monitoring body.   
(e) AFT Request Procedures  
It is crucial that WTO Members contribute to determine the procedures that developing and 
least-developed countries shall follow when th ey request AFT programmes and projects.  
Developing and least-developed countries must know  precisely  how they could address their 
requests.  The procedures should not create a burden on the requesting members.   WT/COMTD/AFT/W/3 
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  (f) Determination of AFT Form (grants or concessional loans) 
In accordance with paragraph 57 of Hong K ong Ministerial Declaration, donors shall 
coordinate with requesting Members to determ ine the form in which AFT programmes will be 
provided. 
7. To enhance transparency and to ensure adequa te assessment, the reports submitted by donors 
and recipients to the Committee on Trade and Deve lopment must be detailed enough to indicate the 
points of strengths and weaknesses, including wh ether assistance provided met its objectives, which 
should be taken into considerati on when providing future programmes and projects.  This process 
must be implemented without creating burdens on recipient countries. 
III. CONCLUSIONS 
8. In sum, AFT is a work-in-progress and we expect that it will be an important addition to an 
ambitious Doha Round outcome.  However, a number of issues need to be addressed and significant 
efforts must be undertaken by all parties involved.  
9. AFT should assist developing and least-develope d countries to overcome the challenges they 
face in the world trading system and enhance their ca pacities and competitiveness.  In order to achieve 
these objectives, the AFT monitoring mechanism must be effective, simple, reliable, and allow for 
feedback. 
10. The Committee on Trade and Development, throug h its role as a monitoring body for AFT, 
should continue to lead discussions on the above-m entioned elements with a view to reach a common 
and clear understanding among WTO Members on how these issues could be adequately 
operationalized and  implemented, taking into acc ount the views of developing and least-developed 
countries in this regard.  
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