WTO members have emphasized the need for increased support for trade policies and regulations in developing economies during an Aid for Trade session of the WTO Committee on Trade and Development.
The meeting, which brought together Geneva-based ambassadors and government officials, also featured the launch of the European Union's 2024 Aid-for-Trade Progress Report.
A key focus of the discussions was the growing importance of digital trade in developing economies. WTO members highlighted the need to accelerate efforts in this area to ensure inclusive economic growth.
According to the Organisation for Economic Co-operation and Development (OECD), Aid-for-Trade disbursements in 2023 totaled $48 billion—a 5% drop from the previous year.
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While most of this funding supported infrastructure and productive sectors, only 2% was directed toward trade policy and regulations.
Representatives from Australia, Barbados, the Pacific Islands Forum, and the United Kingdom shared strategies to help developing economies better integrate into the global trade system.
They underscored the importance of national trade strategies, effective coordination with development partners, and initiatives like the Pacific Aid-for-Trade Strategy, which focuses on services, e-commerce, trade facilitation, and quality infrastructure.
Support for Comoros and Timor-Leste's WTO accession was a key discussion point. Delegates also highlighted trade-related assistance programs, such as the WTO Fisheries Funding Mechanism and the Standards and Trade Development Facility, which help countries meet international trade standards.
Another major theme was the role of developing economies working together to strengthen their trade capacities. Speakers welcomed deeper collaboration with the private sector to scale up financial support and investments.
The European Union's 2024 Aid-for-Trade Progress Report revealed that EU member states accounted for 36% of total Aid-for-Trade disbursements in 2022, contributing €22 billion. The report emphasized the role of trade aid in fostering investment under the EU's Global Gateway initiative.
A study from the European University Institute's Digital Trade Integration Database showed that lower-income economies face significant barriers to digital trade integration due to weak policies, regulatory fragmentation, and infrastructure gaps. Africa, in particular, struggles with these challenges, limiting small businesses' access to digital markets.
To bridge this gap, WTO members stressed the need for technical assistance, better broadband infrastructure, and improved access to digital trade financing.
Full implementation of the Digital Trade Protocol of the African Continental Free Trade Area could boost intra-regional trade in services by up to 10.3%, according to estimates.
As global trade continues to evolve, WTO members reaffirmed their commitment to ensuring developing economies receive the support they need to thrive in an increasingly digital and interconnected world.
