Question

Need help for project on 'aids to trade'

Answer 1

 

Aid for Trade is about helping developing countries, in particular the least developed, to build the trade capacity and infrastructure they need to benefit from trade opening. It is part of overall Official Development Assistance (ODA) — grants and concessional loans — targeted at trade-related programmes and projects.

 

It is recognized that Aid-for-Trade can be a valuable complement to the DDA, but it cannot be a substitute for the development benefits that will result from a successful conclusion to the DDA.

 

Because trade is a broad and complex activity, Aid for Trade is broad and not easily defined. It includes technical assistance — helping countries to develop trade strategies, negotiate more effectively, and implement outcomes. Infrastructure — building the roads, ports, and telecommunications that link domestic and global markets. Productive capacity — investing in industries and sectors so countries can diversify exports and build on comparative advantages. And adjustment assistance — helping with the costs associated with tariff reductions, preference erosion, or declining terms of trade.