Supply Capacity > Inter-American Development Bank (IDB)

Supporting the integration of Latin America and the Caribbean into the global economy through Aid for Trade

The Aid for Trade Initiative aims to help countries integrate into the global economy and to benefit from liberalized trade and increased market access by channeling resources to enhance trade-related capacities and overcome supply-side constraints. Trade is an engine for growth and poverty reduction when accompanied with appropriate complementary public and private sector policies.

The IDB has actively supported the implementation of the Aid for Trade Initiative (AfT) in Latin American and the Caribbean (LAC). As the main institutional counterpart for the World Trade Organization (WTO) in the region for AfT, the IDB, through its Integration and Trade Sector (INT), coordinates its activities with countries and other institutions, such as regional development banks, regional organizations and bilateral donors, and has actively participated in the implementation of several AfT activities, including collaboration with OECD and WTO on AfT monitoring exercise and more recently, on efforts to enhance AfT managing for results, and evaluation.

The key modalities of AfT delivery in LAC include:

  • AfT is a priority on LAC development agendas;
  • Private sector development is a key strategic goal of the AfT initiative in LAC;
  • The regional dimension is a central component of the AfT initiative in LAC;
  • AfT should be delivered and implemented in LAC according to the principles of the Paris, Accra and Busan principles on Aid Effectiveness.

The Bank established a multidonor Aid for Trade Fund, designed to help mobilize resources to support AfT implementation in LAC. The strong presence of the IDB in LAC, its recognized trade expertise, and its ability to channel funding and technical assistance to the region, including through other regional institutions, will improve coordination and effectiveness in implementing the AfT initiative. In August 2012, the AfT Fund had approved over 20 technical assistance projects.

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