Aid for Trade (AfT)’s role in Promoting South-South Cooperation
A unique characteristic of the Aid for Trade Initiative is its emphasis on South-South cooperation as a valuable tool to deliver effective results in trade capacity building. With the growing role of intra- and supra-regional trade, South-South cooperation has now become an important item of the bilateral agenda of many developing countries.
The World Trade Organization (WTO)’s case story presented to the Committee on Trade and Development (WT/COMTD/AFT/W/26, 10 June 2011) on the mainstreaming of Aid for Trade into the Trade Policy Review Mechanism highlights the potential for AfT to promote regional cooperation among developing countries. The case story examines the experience gained from six pilot trade policy reviews (TPRs): China, the United States, Belize, Honduras, Malawi, and the joint TPR of Benin, Burkina Faso and Mali. Given the successful experience with the pilot TPRs, Aid for Trade analysis in the TPR process has been expanded beyond these pilots. This process has proven especially useful for middle-income developing countries and LDCs, which have used the TPR process to enhance internal coordination on Aid for Trade priorities, develop national AidforTrade strategies and collaborate with regional institutions to take forward recommendations made during the TPR process.