COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE AND THE COMMITTEE OF THE REGIONS Achieving Prosperity through Trade and Investment Updating the 2007 Joint EU Strategy on Aid for Trade Updating the 2007 Joint EU Strategy on Aid for Trade
Date: 2017-11-13
Institutions: Directorate-General for International Cooperation and Development, European Commission
Subjects: EU aid, developing countries, development aid, human rights, innovation, investment, least-developed country, poverty, sustainable development, trade cooperation

EN 

  EN 

   EUROPEAN COMMISSION  Brussels, 13.11.2017  COM(2017) 667 final  COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE AND THE COMMITTEE OF THE REGIONS Achieving Prosperity through Trade and Investment Updating the 2007 Joint EU Strategy on Aid for Trade  
 
 
ACHIEVING PROSPERITY THROUGH TRADE AND INVESTMENT 
UPDATING THE 2007 JOINT EU STRATEGY ON AID FOR TRADE 

1 

INTRODUCTION 

Aid for trade is assistance provided to support partner countries' efforts to develop economic 
capacities  and  expand  their  trade  as  leverage  for  growth  and  poverty  reduction.  Since  the 
World  Trade  Organisation  (WTO)  launched  the  concept  in  2005,  it  has  become  a  well-
established  workstream  in  development  cooperation  to  support  developing  countries  in 
reaping the benefits of trade. It covers a wide range of areas including trade policy-making, 
trade-related  regulations  and  standards,  economic  infrastructure  (e.g.  energy,  transport, 
telecom)  and  productive  capacity  building  in  export-oriented  sectors  such  as  agriculture, 
fisheries and manufacturing.1 

In  response  to  the  WTO,  the  EU  formulated  its  Strategy  on  Aid  for  Trade2  'Enhancing  EU 
support for trade-related needs in developing countries' in 2007 as a joint response from the 
EU  and  its  Member  States  to  help  developing  countries  and  particularly  Least  Developed 
Countries  (LDCs)  integrate  into  the  rules-based  global  trading  system  and  use  trade  more 
effectively to boost growth and reduce poverty.  

Ten  years  later,  economic  realities  have  evolved  significantly  with  a  rise  of  increasingly 
complex  global  value  chains.  The  political  context  has  equally  changed  fundamentally  both 
globally – in particular with the 2030 Agenda for Sustainable Development3 – and at EU level 
with  the  Global  Strategy  for  the  EU's  Foreign  and  Security  Policy4,  the  new  European 
Consensus on Development5, and the Trade for All Strategy6. 

The purpose of this Communication is to update the existing Aid for Trade strategy in light of 
these  developments.  It  proposes  a  results-driven  and  integrated  approach  to  aid  and 
investment for trade, making the most of the wide range of EU policy tools available in order 
to  increase  their  overall  impact  on  growth  and  poverty  reduction.  The  focus  is  on  creating 
more and better jobs and on countries in the greatest need, in particular LDCs. 

1 The aid for trade scope includes nearly 100 OECD Development Assistance Committee (DAC) purpose codes, 
a 5-digit code used for recording information on the purpose (sector of destination) of individual aid activities. 
Purpose codes identify the specific area of the recipient's economic or social structure the transfer is intended to 
foster. (http://www.oecd.org/dac/aft/aid-for-tradestatisticalqueries.htm). 
2  Council  Conclusions  14470/07  (http://trade.ec.europa.eu/doclib/docs/2008/november/tradoc_141470.pdf); 
COM(2007)163 final. 
3  Resolution  adopted  by  the  General  Assembly  on  25  September  2015:  Transforming  our  world:  the  2030 
Agenda for Sustainable Development (https://sustainabledevelopment.un.org/post2015/transformingourworld). 
4 http://europa.eu/globalstrategy/sites/globalstrategy/files/eugs_review_web.pdf  
5 COM(2016) 740 final. 
6 COM(2015) 497 final 'Trade for all – Towards a more responsible trade and investment policy'; see also the 
progress report on its implementation – COM(2017) 491 final. 

2 

 
 
                                                 
2 

EU AID FOR TRADE DURING THE LAST 10 YEARS 

Looking back at the last ten years, the EU and its Member States have established themselves 
as the world's largest provider of aid for trade, supplying a third of its total global amount.7 
Overall, the EU's aid for trade commitments increased by over 85% between 2007 and 2015, 
reaching  EUR 96.79 billion. In  2015 alone, commitments amounted to a record EUR 13.16 
billion.  An  important  element  of  the  aid  for  trade  concept  is  the  Trade  Related  Assistance8 
(TRA) whose target of EUR 2 billion was achieved in 2008, two years ahead of schedule. By 
2015, the annual figure had reached a substantial EUR 2.8 billion, bringing the total amount 
provided over the 2007-2015 period to EUR 21.5 billion. 37% of this total was allocated to 
African, Caribbean and Pacific (ACP) countries. Support to LDCs remained stable in absolute 
terms,  reaching  nearly  EUR  18  billion  over  the  2007-2015  period  (19%  of  total  EU  aid  for 
trade), while decreasing in relative terms as the EU's total aid for trade expanded.  

On the qualitative side, the EU's Trade Related Assistance achieved significant results in most 
priority areas. In LDCs and fragile contexts, the assistance often managed to stabilise or even 
expand  trade  volumes.9  EU  aid  for  trade  has  also  achieved  positive  results  through  broader 
regional or thematic multiannual initiatives such as EU support to ACP capacities to integrate 
in the multilateral trading system and to prepare for Economic Partnership Agreements.10 

At the same time, aid for trade had only limited success in promoting and diversifying trade 
for the poorest countries and in  fragile situations. Despite substantial  support and tariff free 
access to the EU market for almost all their products11, LDCs and countries in situations of 
fragility have remained on the margins of the world economy.12 LDCs' manufacturing share 
of 12% in 2015 was still well below the developing countries average of 20%. LDCs' trade 
deficit in goods and services has massively increased between 2006 and 2015, from USD 7.3 
to 104.2 billion and the LDC share of world exports in 2015 was still less than 1%, while they 
represent 12.8% of global population. 

7  EUR  253  billion  global  aid  for  trade  over  the  2007-2014  period  (EU  33%,  Japan  19%,  US  10%).  Source: 
annual EU aid for trade monitoring reports.  
8  TRA  corresponds  to  core  trade  issues  and  includes  the  following  categories  of  OECD  DAC  purpose  codes: 
Trade  Policy  and  Regulation  (331xx,  except  33150)  and  Trade  Development  (240xx,  25010,  311xx,  312xx, 
313xx, 321xx, 322xx, 323xx, 33210, all with a Trade Development Marker). 
9 Strategic Evaluation of EU Trade Related Assistance to Third Countries, based on a sample of 23 countries and 
five  regional  organisations.  https://ec.europa.eu/europeaid/strategic-evaluation-eu-trade-related-assistance-third-
countries-2004-2010_en.  
10 Final evaluation of key ACP EU trade assistance programmes (2015) including: 'Integration to the Multilateral 
Trading  System  and  Support  to  the  Integrated  Framework',  'All  ACP  Institutional  Trade  Capacity  Building 
Facility  (Trade.Com)',  Capacity  Building  in  Support of  the  Preparation  of  Economic  Partnership  Agreements'. 
https://europa.eu/capacity4dev/public-priv_sector-trade-regio_int/document/trade-assistance-through-multiple-
partnerships-findings-evaluation-three-eu-funded-trade-as 
11 EU is the most important export market for LDC goods, with 25.1% share of LDC world exports in 2016, up 
from  21.4%  in  2007.  (Source:  EUROSTAT  –  IMF  (13.10.2017)).  Still,  the  LDCs'  share  of  all  EU  imports 
remained  low,  though  growing:  2.16%  of  all  EU  imports  in  2016,  as  compared  to  1.44%  in  2007.  (Source: 
EUROSTAT – Comext (13.10.2017)  
12 The Least Developed Countries Report 2016, UNCTAD 
(http://unctad.org/en/PublicationsLibrary/ldc2016_en.pdf)  

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3 

A CHANGING WORLD ECONOMY AND POLICY CONTEXT 

Globalisation  of  economic  activities  is  not  a  new  phenomenon,  but  drivers  and  trends  of 
globalisation are changing fast.13 

One  key  current  trend  is  the  rise  of  global  and  regional  value  chains,  with  international 
production networks based increasingly on inter-firm and intra-firm trade. There is a growing 
importance of services in international trade and digitalisation is shaping the global economy 
in  new  ways,  many  of  which  are  yet  to  be  uncovered.  A  major  challenge  however  is  that 
many  developing  countries'  participation  in  global  value  chains  and  digitalisation  has 
continued  to  remain  marginal.  Industrialisation,  productivity  and  diversification  of  many 
developing  countries'  economies  remain  limited  as  they  continue  to  be  dependent  on  low-
wage labour, commodity exports and low-end primary production. This calls for considerable 
reforms and investments that official financial flows alone will not be able to meet. 

the  necessary  means  for  delivering 

The  policy  context  has  also  changed.  The  Addis  Ababa  Action  Agenda14  adopted  in  2015 
addresses 
the  2030  Agenda  for  Sustainable 
Development agreed shortly after. They emphasise the importance of international trade and 
private  sector  investment  as  means  of  implementation  alongside  Official  Development 
Assistance  (ODA).  The  2030  Agenda,  establishes  the  new  and  universal  development 
paradigm  for  the  years  to  come,  based  on  the  integration  and  interdependence  of  all  17 
Sustainable  Development  Goals  (SDGs)  and  169  targets  around  the  three  dimensions  of 
sustainable development: economic, social and environmental. 

The  Paris  Agreement  on  Climate  Change15  requires  structural  changes  to  production  and 
trading  systems  so  that  a  new  low-carbon  and  climate-resilient  economy  is  created  that  can 
adapt  to  and  mitigate  climate  change.  The  circular  economy  transition  generates  new 
innovation and economic opportunities that developing countries should further seize. 

This  changing  context  is  reflected  in  two  fundamental  EU  policy  initiatives.  The  first,  the 
Global Strategy of the EU's Foreign and Security Policy, calls for a responsive and joined-
up  EU,  by  making  the  most  of  the  wide  range  of  policy  instruments  at  its  disposal,  among 
which development and trade tools are prominent.  

Second,  the  new  European  Consensus  on  Development16  incorporates  the  2030  Agenda 
paradigm  shift  into  EU  development  cooperation  policy.  It  focuses  on  poverty  reduction  in 
line  with  the  principles  of  effective  development  cooperation.  It  calls  for  seeking  synergies 
across policies; greater coordination and coherence among EU actors and instruments; and the 
promotion  of  trade  and  responsible  investment  in  developing  countries  in  support  of 

13 Reflection Paper on Harnessing Globalisation, European Commission, COM(2017) 240 of 10 May 2017. 
14  Outcome  document  adopted  at  the  Third  International  Conference  on  Financing  for  Development  (Addis 
Ababa, Ethiopia, July 2015), endorsed by UN General Assembly in resolution 69/313 of 27 July 2015. 
15 Outcome of the Paris climate conference (COP21) as entered into force on 4 November 2016. 
16 https://ec.europa.eu/europeaid/sites/devco/files/european-consensus-on-development-final-20170626_en.pdf. 

4 

 
                                                 
sustainable  development,  following  up  on  orientations  set  by  the  Trade,  Growth  and 
Development Communication17 and updated by the 2015 Trade for All communication.  

Two  important  aspects  stem  from  this  renewed  policy  context.  First,  Official  Development 
Assistance  resources  should  be  targeted  where  the  need  is  greatest,  especially  Least 
Developed Countries and in situations of fragility. Second, the focus is shifting towards using 
Official  Development  Assistance  more  strategically  as  a  catalyst18  to  mobilise  other  public 
and  private  financial  flows,  such  as  those  under  the  EU's  new  External  Investment  Plan 
(EIP). Looking ahead, more public and private investment will become an integral part of EU 
support to trade and productive capacity needs.  

4 

A COHERENT AND IMPACTFUL WAY FORWARD 

Against the changing economic and political context, it is time to revise the EU's aid for trade. 
The  ambition  must  be  to  support  partner  countries  in  their  efforts  to  make  progress  on  the 
SDGs and achieve sustainable prosperity through increase trade and investment. This requires 
the following fundamental changes compared to today's practices: 

i. 

ii. 

iii. 

iv. 

Reduce current fragmentation and increase leverage of aid for trade through better 
informed and coordinated delivery. 

Scale up EU aid for trade impact by ensuring full coherence with and making the 
most  of  instruments  across  EU  external  policies,  in  particular  the  new  External 
Investment Plan, trade agreements and trade schemes. 

Stronger  focus  on  the  social  and  environmental  dimensions  of  sustainability, 
together with inclusive economic growth. 

Better  differentiation  of  countries  with  increased  focus  to  Least  Developed 
Countries and situations of fragility. 

v. 

Improved monitoring and reporting. 

4.1  Reducing fragmentation, increasing leverage 

Current spending of EU's aid for trade happens in too decentralised and fragmented manner. 
In 2015 for example, the EUR 13.6 billion of EU's aid for trade represented a third of EU total 
ODA  and  were  channelled  through  some  3,000  financing  decisions  matching  nearly  90 
OECD-DAC  purpose  codes.  This  made  it  challenging  to  ensure  optimal  coherence  and 
effectiveness.19 

17  COM(2012)  22  final  'Trade,  growth  and  development  –  Tailoring  trade  and  investment  policy  for  those 
countries most in need. 
18  European  Report  on  Development  (2015):  Combining  finance  and  policies  to  implement  a  transformative 
post-2015  development  agenda  (ODI,  ECDPM,  GDI/DIE,  University  of  Athens  and  the  Southern  Voice 
Network). 
19 From 2012 to 2017, over 250 projects addressed economic governance and investment climate reforms in Sub-
Saharan Africa. In future, coherence will be ensured among others through the EIP integrated approach. 

5 

 
                                                 
For  this  reason,  it  is  important  to  better  combine  the  vast  array  of  development  finance 
tools  (bilateral,  regional,  thematic,  etc.)  and  aid  modalities  (technical  assistance,  grants, 
budget support, twinning, blending, etc.) both at EU and Member State level. This should be 
complemented  by  the  lending  activities  of  international  and  European  development  finance 
institutions in developing countries in order to provide more integrated and sizeable responses 
to partner countries' trade and productive capacity needs.  

If the EU is to be successful in contributing significantly to the achievement of the SDGs, it 
must focus more on catalysing private investment. The External Investment Plan (EIP) which 
covers  Africa  and  the  European  Neighbourhood  will  follow  an  integrated  approach.  It  will 
deploy  innovative  risk-sharing  mechanisms  with  a  new  European  Fund  for  Sustainable 
Development,  including  a  guarantee  for  capital  mobilisation,  combined  with  technical 
assistance and the improvement of investment climate reforms.  

In line and within the partner countries' and regions' own development strategies,  synergies 
will be sought proactively with EU trade agreements and schemes. These have become an 
important  driver  of  the  EU's  relationship  with  developing  countries.20  They  offer  market 
access  opportunities  that  local  Small  and  Medium-Sized  Enterprises  (SMEs)  are  eager  to 
seize. They provide incentives for reform that development cooperation can further build on. 
EU Aid for trade will thus help promote a positive implementation dynamic of the agreements 
from the outset, and contribute to turning them into a success. EU aid for trade will be used to 
enhance the development potential of other EU policies as well. 

Actions: 

 

 

 

Reinforce operational linkages across all EU development cooperation instruments and 
tools, including country and regional programmes and European Development Finance 
Institutions operations, at both EU and Member States' levels. 

Closely  link  EU  budget  support21  to  investment  climate  reforms  when  mobilising 
private capital in developing countries through innovative risk-sharing mechanisms.22 

Use the institutional monitoring mechanisms established by EU free trade agreements as 
an additional means to identify relevant aid for trade activities.23 

20 Developing countries eligible for EU development cooperation are either signatories of trade agreements with 
the EU or beneficiaries of the EU Generalised Scheme of Preferences. 
21 Budget support helps developing countries' domestic resource mobilisation efforts, increases transparency and 
accountability, improves public investment policies and their implementation as well as the investment climate 
and business environment. 
22 The cornerstone of this effort will be the new EIP, in Africa and European Neighbourhood countries. Blended 
finance  coupled  with  appropriate  policy  and  regulatory  reforms  (Pillar  3  on  Investment  climate)  provide  an 
integrated approach that is also valid in other parts of the developing world. 
23 EU free trade agreements establish sectoral Sub-Committees where both signatories discuss implementation 
progress  in  areas  such  as  technical  barriers  to  trade,  trade  and  sustainable  development,  sanitary  and 
phytosanitary matters, and customs and trade facilitation. Information generated by these Sub-Committees can 
help pinpoint needs that can be addressed through aid for trade.  

6 

 
                                                 
 

 

Include  in  EU  free  trade  agreement  implementation  plans,  targeted  measures  to  help 
developing partner countries make  better use of the opportunities offered by EU trade 
agreements. 

Assess regularly the rate of preferences utilisation by partners of trade agreements and 
beneficiary  countries  of  the  Generalised  Scheme  of  Preferences,  and  analyse  the 
limiting factors, from both domestic supply-side24 and EU trade regime25 perspectives. 
Direct EU aid for trade towards better addressing such constraints and, where relevant, 
assess the need to take them into account in the evolution of trade measures. 

4.2 

Increasing relevance  

Directing EU aid for trade  more effectively requires a systematic use of available trade and 
investment diagnostics. An evidence-based approach will allow for a sound understanding of 
value chains and downstream markets to have a more informed policy dialogue with partner 
countries' governments, leading to enhanced design and impact of projects. 

Mechanisms  for  genuine  stakeholder  engagement  will  be  established.  Structured  dialogue 
with the private sector is needed to pinpoint reforms in the business and trading environment 
that facilitate investment and job creation. Civil society and social partners have a key role 
to  play  in  upholding  priorities  such  as  creating  jobs  for  the  young  people,  economic 
empowerment of women, decent work and environmental standards. Research and innovation 
actors  are  instrumental  in  promoting  investment  and  job  creation.  Within  their  jurisdiction, 
local  authorities  also  have  a  strong  impact  on  the  enabling  environment  for  business  and 
decent  work,  and  in  the  efficiency  and  governance  of  local  agencies  responsible  for 
administering regulation. 

In  addition  to  the  guidance  obtained  through  evidence-based  and  stakeholder  engagement 
approaches, there are broader trends and issues to consider in certain fields. 

Value  chains  are  a  driver  to  help  developing  countries  integrate  better  into  regional  and 
global trade. EU aid for trade will be focused more strategically in helping partner countries 
develop and move-up value chains.26  

Quality  infrastructure  is  an  important  area  for  EU  aid  for  trade  to  address  supply-side 
constraints  and  non-tariff  barriers.  It  encompasses  the  regulatory  and  operational  aspects  of 
standardisation,  accreditation,  conformity  assessment  and  market  surveillance.  Capacity 
building  of  regulators  and  competent  authorities,  food  safety  systems  and  laboratory 
equipment,  as  well  as  technical  assistance  to  producers  and  SMEs  in  complying  with 
technical  regulations,  private  standards,  food  safety  and  sanitary  and  phytosanitary 

24 Infrastructure, policies, productive capacities, compliance with standards, etc. 
25 Tariffs, rules of origin, quotas, sanitary and phytosanitary matters, etc. 
26 Since 2008, making good use of aid for trade in the sector, Côte d'Ivoire and Ghana have been moving beyond 
the  export  of  raw  cocoa  beans  to  cocoa  products  that  have  been  processed  locally.  Exports  to  the  EU  of 
chocolate, cocoa butter, cocoa paste and cocoa powder were multiplied by 2.5 in Côte d'Ivoire and 4.5 in Ghana 
within less than 8 years. 

7 

 
                                                 
measures are effective enablers of trade and investment when approached in a market-driven 
manner.  

Digitalisation  is  an  enabling  factor  for  accessing  external  markets  and  for  integration  into 
global  value  chains.  Digital  innovation  has  already  demonstrated  its  potential  to  offer 
solutions  to  local  problems,  reduce  trade  costs  and  offer  new  business  opportunities.27 
Technological trends help innovative SMEs enter the market. EU aid for trade will encourage 
investment  in  digital  technologies  and  services,  computerisation,  e-Government  and 
e-commerce logistics, as well as on technical assistance for governments to establish policies 
and favourable frameworks to cross-border e-commerce. 

Trade  facilitation  has  gained  further  prominence  with  the  entry  into  force  of  the  Trade 
Facilitation Agreement, the most significant multilateral trade deal concluded since the WTO 
was established in 1995. The EU and its Member States have committed to mobilising at least 
EUR  400  million  in  trade  facilitation  assistance  over  a  five-year  period  from  its  entry  into 
force,  including  for  projects  improving  developing  countries'  customs  systems.  EU  aid  for 
trade will prioritise those Trade Facilitation Agreement provisions notified as category 'C'.28 

In  general,  EU  aid  for  trade  will  remain  flexible  so  it  can  incorporate  the  development 
cooperation  implications  of  WTO  topics  relating  to  both  existing  negotiations  and 
commitments,  including  the  Least  Developed  Countries  services  waiver,  as  well  as  to  new 
topics as they appear. 

Actions: 

 

 

 

Identify  and  support  value  chains  with  potential  for  value  addition29  through  more 
systematic use of trade and investment diagnostics and market intelligence tools by EU 
Delegations and Member States' agencies in the field, to guide EU policy dialogue and 
EU aid for trade delivery. 

Conduct a genuine dialogue and engagement with the private sector in order to identify 
and prioritise investment climate constraints.30 

Use information from EU control systems evaluating third countries exports compliance 
with  EU  standards,  as  a  valuable  source  in  addressing  supply-side  constraints, 

27 Commission SWD(2017)157 'Digital4Development: mainstreaming digital technologies and services into EU 
Development Policy'. 
28 Category C notifications contain provisions that a developing country or LDC designates for implementation 
on a date after a transition period and requiring the acquisition of implementation capacity through the provision 
and assistance of capacity building (source: WTO). 
29  For  example  coffee,  cocoa,  and  cotton  value  chains,  where  downstream  investment  is  needed  to  generate 
added value. 
30 For example, the Sustainable Business for Africa (SB4A) platform under the EIP, and building on networks of 
EU Business Groups/Chambers of Commerce. 

8 

 
                                                 
identifying areas of improvement and corrective actions where EU aid for trade can be 
mobilised.31 

 

Strengthen the engagement with civil society and local authorities to better inform aid 
for  trade  delivery  including  through  the  Domestic  Advisory  Groups32  (DAG) 
established by new generation of EU free trade agreements, EU country roadmaps for 
engagement with civil society and equivalent engagement formats with local authorities, 
and Economic Partnership Agreements. 

4.3  Progress on Human Rights and Sustainable Development 

Gender  equality  is  not  only  a  fundamental  human  right,  it  is  also  crucial  for  economic 
development. Economies granting better opportunities for women have a higher potential for 
growth  and  competitiveness.  EU  aid  for  trade  will  help  fulfilling  the  EU's  renewed  and 
in  particular,  women's  economic 
expanded  commitment  on  gender  equality  and, 
empowerment.33  

Inclusiveness  will  be  at  the  heart  of  EU  aid  for  trade  as  a  result  of  the  EU's  rights-based 
approach 
in  development  cooperation,  which  also  promotes  participation,  non-
discrimination,  equality  and  equity,  transparency  and  accountability.34  This  will  entail 
improved analysis of the impact of trade and investment initiatives on human rights. 

EU  aid  for  trade  will  take  due  account  of  the  four  pillars  of  the  Decent  Work  Agenda 
(standards  and  rights  at  work,  employment  creation  and  enterprise  development,  social 
protection and social dialogue).35 It will build on the broadened possibilities offered by 'new 
generation'  EU  FTAs  to  support  labour  rights  and  the  Decent  Work  Agenda,  through  the 
binding  social  and  environmental  provisions  contained  in  the  Trade  and  Sustainable 
Development chapters.36 

Environmental sustainability will  also be at the heart of aid for trade.  Climate finance  and 
the  green  and  circular  economy  offer  developing  countries  leapfrogging  opportunities  in 
trade, growth and employment and will enhance societal and ecological resilience. EU aid for 
trade will be used to help developing countries' transition to low carbon and climate change 
resilient economies.  

31 An example is the Rapid Alert System for Food and Feed (RASFF) through which rejections of food and feed 
consignments at the external borders of the EU are notified when these have been tested and a health risk has 
been detected. 
32 Civil society consultation mechanism 
33  For  example,  by  promoting  women's  economic  empowerment  through  access  to  finance,  advisory  services, 
women's business networks and digital enablers for social and financial inclusion.  
34 SWD(2014)152 'Toolbox on a rights-based approach, encompassing all human rights for EU development' 
35 http://www.ilo.org/global/topics/decent-work/lang--en/index.htm  
36  These  include  adherence  to  key  international  labour  and  environmental  standards  and  agreements,  the 
sustainable  use  of  natural  resources  and  the  promotion  of  corporate  social  responsibility,  responsible 
management  of  supply  chains,  sustainability  assurance  schemes  (e.g.  eco-labelling)  and  fair  and  ethical  trade 
initiatives. 

9 

 
                                                 
Sustainability as part of companies' core strategies, promotion of fair and ethical trade 
and  responsible  business  practices  –  including  in  relation  to  sustainable  value  chains  –  in 
line  with  the  UN  Guiding  Principles  on  Business  and  Human  Rights,  will  make  a  strong 
contribution towards the 2030 Agenda.37 

Actions: 

 

 

 

 

Systematic  gender  analysis  of  every  aid  for  trade  project  in  order  to  promote  women 
economic empowerment.38 

Adequately  connect  EU  support  to  social  and  environmental  objectives,  aid  for  trade, 
the  chapters  on  trade  and  sustainable  development  of  the  new  generation  of  EU  free 
trade  agreements,  the  Environmental  Goods  Agreement39,  and  international  principles 
and guidelines on responsible business conduct.40 

Promote social and environmental sustainability along value chains through integrated 
and multistakeholder approaches.41 

Support  fair  and  ethical  trade  in  partner  countries,  such  as  through  a  more  targeted 
approach on commodities. 

4.4  Country differentiation 

EU  aid  for  trade  interventions  need  to  be  better  tailored  to  different  country  contexts.  This 
will help identify the determining factors and best triggers for sustainable development, and 
the best possible sequencing of reforms in order to target EU support accordingly. 

A greater proportion of EU aid for trade will be channelled to Least Developed Countries to 
help  achieve  the  SDG  target  of  doubling  their  share  of  global  exports.42  Increasing  Least 
Developed Countries' exports to the EU market requires scaled-up aid and private investment 
based on analysis of supply-side constraints and needs.43 

37  An  example  of  EU  support  to  fair  trade  supply  chain  development  was  EU's  contribution  to  sustainable 
development through fair trade interventions in the cotton sector in India, Nepal and Sri Lanka. Trade linkages 
between local SMEs with EU fair trade players were established, generating nearly EUR 2 million worth of fair 
trade cotton, benefitting nearly 1000 farmers organised under 175 producer groups.  
38  SWD(2015)  182  final.  Joint  Staff  Working  Document:  "Gender  Equality  and  Women's  Empowerment: 
Transforming  the  Lives  of  Girls  and  Women  through  EU  External  Relations  2016-2020".  In  particular,  the 
objectives  on  access  to  decent  work  for  women  of  all  ages  and  equal  access  to  financial  services,  productive 
resources including land, trade and entrepreneurship. 
39 Currently under negotiation among several WTO members. 
40 These principles and guidelines include the OECD Guidelines for Multinational Enterprises, the ILO Tripartite 
Declaration of Principles concerning Multinational Enterprises and Social Policy, the UN Global Compact and 
the  UN  Guiding  Principles  on  Business  and  Human  Rights  and  international  standards  on  responsible 
investments and responsible business conduct. 
41 Such as in garment, timber, extractive industries, and others where risks are particularly high.  
42 AAAA §90 and SDG Targets 8.a and 17.11. 
43 Industrialisation in Africa and Least Developed Countries, a Report to the G20 Development Working Group 
by UNIDO, 2016. 

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Conflict  and  fragility  are  major  drivers  of  migration.  Supporting  resilience,  inclusive  and 
sustainable growth and decent jobs in situations of conflict and fragility is essential and will 
require  careful  prioritisation  of  interventions.  Support  to  food  security,  basic  needs  and 
emergency job creation programmes should remain priorities.44 EU aid for trade should also 
help  build  resilience  and  lay  the  foundations  for  sustainable  economic  development,  while 
boosting infrastructure and labour intensive sectors and interventions. 

The  EU's  more  differentiated  aid  for  trade  approach  will  also  apply  to  more  advanced 
developing  countries  which  have  graduated  from  EU  bilateral  cooperation  since  2014.45 
Cooperation  with  such  countries  will  be  steered  to  areas  of  mutual  interest,  including  free 
trade agreements negotiations and the integration of emerging economies into world markets, 
as  well  as  cooperation  with  EU  Neighbourhood  countries  through  jointly  identified 
partnership priorities. 

Actions: 

 

 

 

Increase the proportion of EU and Member States' aid for trade directed towards Least 
Developed Countries with a vision to progressively achieve one fourth46 of total EU aid 
for trade by 2030. 

In  situations  of  fragility  and  conflict,  carefully  sequence  and  prioritise  stabilising  and 
quick-win interventions by applying a fragility lens and 'do no harm' principle.47 

Expand engagement with more advanced developing countries including through South-
South  and  triangular  cooperation,  and  in  areas  of  mutual  interest  (e.g.  regional 
integration, regional value-chains, trade facilitation and exchange of best practice). 

4.5  More comprehensive monitoring and reporting 

Existing means of analysing and showcasing the impact of EU aid for trade interventions will 
be improved, and reporting will be made more qualitative and results-driven with a reduced 
time-lag between aid for trade commitments and reporting of actions. In particular, linking the 
EU aid for trade performance indicators to those of related instruments such as the External 
Investment Plan or trade agreements will provide a greater sense of its overall impact.  

Information  systems  and  tools48  are  being  modernised  so  as  to  allow  a  better  collection, 
analysis  and  dissemination  of  lessons  learned in  line  with  the  EU  International  Cooperation 

2014. 

44  Reference  Document  No  17  –  Operating  in  situations  of  conflict  and  fragility  –  An  EU  Staff  Handbook, 
December 
https://europa.eu/capacity4dev/public-fragility/document/operating-situations-crisis-and-
fragility-eu-staff-handbook. 
45  Under  the  Development  Cooperation  Instrument,  these  countries  still  continue  to  benefit  from  development 
cooperation at regional level. 
46 Baseline: 18% in average from 2010 to 2015. Source: EU Aid for Trade Monitoring report 2017. 
47  Not  to  undermine  protection,  nor  exacerbate  existing  inequalities  and  consider  both  the  intended  and 
unintended consequences of aid for trade interventions. 
48 The progressive rolling out of a new operational system of the Commission is expected to start in 2018.  

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and  Development  Results  Framework.49  This  will  also  increase  the  ease  and  efficiency  of 
producing  country-specific  and  trade-related  breakdowns  of  relevant  recent  activities  which 
can inform and support policy dialogue and new aid for trade interventions. 

The  EU  will  continue  to  support  processes  that  aim  to  acknowledge  the  increasing  role  of 
other financing flows beyond Official Development Assistance, in order to capture the EU's 
wider  contribution  to  the  trade,  investment  and  productive  capacities  of  partner  countries 
catalysed by its Official Development Assistance.  

49 SWD(2015) 80 final. 

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