Barbados
Bring the spotlight back onto Aid for Trade
Ambassador Matthew Wilson of Barbados, Coordinator of the African, Caribbean and Pacific (ACP) Group at the WTO, calls for the Aid for Trade initiative to be strengthened and reimagined, with a view to achieving shared prosperity.
Ambassador Matthew Wilson of Barbados, Coordinator of the African, Caribbean and Pacific (ACP) Group at the WTO.Can you give us a snapshot of the ACP Group?
The ACP Group consists of nearly 80 members, including small island states, least developed countries, landlocked nations and net food-importing developing countries. ACP economies are home to the youngest and fastest-growing populations on the planet. They include large ocean states with unexplored seas in their boundaries, they possess mineral wealth that will drive the next development wave, and they are the consumer and agricultural markets of the future. At the same time, they face unique challenges, ranging from climate crises to debt distress and commodity dependence.
How has trade support helped ACP economies at the WTO?
I believe WTO members are increasingly aware of how demand-driven trade support has helped the ACP build agency at the WTO. Evidence of this is everywhere – from the role the ACP played in finalizing the Trade Facilitation Agreement to its engagement on fisheries, agriculture and e-commerce and its participation in discussions related to dispute settlement and WTO reform. It is also evident in ACP economies' re-engagement on services trade and on trade and the environment, as well as on accessions and trade policy reviews. What may not be evident is the invisible capacity enhancement happening in ACP capitals that supports and empowers individual ACP members to engage on a number of issues. So, country ownership and partnerships remain paramount.
What more can be done to help ACP economies fully realize their trade potential?
Trade and investment facilitation and addressing non-tariff measures are key. For example, through value addition ACP economies can transform commodity dependence into commodity enhancement. And through targeted investments in the agriculture sector, ACP economies can gain better access to other markets for their agricultural products while strengthening their food security.
It is about digitalizing ACP economies and making their MSMEs more competitive. It is about investing in the trade component of the green transition and helping developing countries to produce and trade in the goods and services needed to future-proof ACP economies.
How do we get there?
At a time when development budgets are shrinking and global uncertainty is rising, Aid for Trade remains essential for addressing global problems through global solutions. When executed properly, Aid for Trade works – as demonstrated by examples from the Enhanced Integrated Framework, the Standards and Trade Development Facility, the International Trade Centre, UNCTAD and regional development banks.
Official development assistance will not meet the development needs of the world, but it can help to scale up private and public funding. New financing arrangements need to be considered, such as impact investing and the climate field’s green and blue bonds. And South-South and triangular cooperation should be nurtured.
Ultimately, the profile of Aid for Trade needs to be raised once again, but also renamed and revamped. For example, it could be called Partnerships for Trade and Development or Investment for Trade. The WTO’s 14th Ministerial Conference in Cameroon offers a platform to make this happen.