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4th Global Review of AfT: "Connecting to value chains“
& Outlook on future AfT work
Rainer Lanz, World Trade Organization (WTO)Expert Group Meeting on M&E Systems
Hammamet, 12 December 2013
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Overview
1. 4th Global Review 8-10 July 2013, Geneva• Event and outcomes• Connecting to value chains
2. Outlook on future AfT work• Bali package and implications
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4th Global Review – 8-10 July 2013
24 plenary sessions 30 side events (Members, IOs, NGOs)1,486 registered participants300 speakersHigh level participation – IGOs, MinistersBusiness and civil society representation
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Numerous Publications• Fourth Global Review of Aid for Trade 2013: Summary Report (report)• Aid for Trade at a Glance 2013: Connecting to Value Chains; OECD-WTO (report)• Aid for Trade and Value Chains: Agrifood, ICT, Textiles, Tourism, Transport and Logistics• Aid for Trade: Connecting firms in developing countries to value chains, OECD/WTO (
policy brief)• Connecting to GVCs and Aid for Trade; IsDB (report)• Connecting LDCs to Value Chains (report)• Building trade capacities for Africa’s transformation – a critical review of Aid for Trade UNECA;
(report)• India-Africa: South-South Trade and Investment for Development; CII & WTO (report)• Promoting the private sector and global value chains; Asia Pacific Regional Technical Group
(report)
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Video Resources
Highlights of the 4th Global Review: 9 minutesAgrifood value chains: 2 minutes ICT value chains: 2 minutesTextiles and Tourism: 2 minutesTourism: 2 minutesTransport and logistics: 2.5 minutes
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OECD/WTO monitoring exercise• Public sector (132 replies)
• Partner countries (80), donors (43), South-South assistance providers (9)
• ESCWA countries: Jordan, Morocco, Oman, Sudan, Tunisia, Yemen
• Private sector (697 replies)• Developing country suppliers (524) and lead firms (173)• Agrifood (257), Information and communication
technology (ICT) (125), Textiles and apparel (106), Tourism (113), Transport and logistics (96)
• 23 firms from 10 ESCWA countries
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What are the main barriers for developing country firms to participate in value chains? (I)
0% 10% 20% 30% 40% 50% 60% 70%
Burdensome documentationTrade restrictions
Inability to attract FDIBurdensome border procedures
Lack of labour force skillsStructure of value chains
Market entry costsLack of comparative advantage
Standards complianceLimited access to trade finance
Inadequate domestic infrastructure
Partners Donors
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What are the main barriers for developing country firms to participate in value chains? (II)
0% 10% 20% 30% 40% 50% 60%
Standards infrastructure
Transport infrastructure
Regulatory transparency
Customs procedures
Business environment
Labour skills
Transportation costs & delays
Access to finance
Developing country suppliers Lead firms
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Which type of aid is “very effective” according to developing partners?
19
35
39
42
42
45
54
58
68
0% 20% 40% 60% 80% 100%
Support for export processing zones
Direct sectoral support
Support for financial services
Investment promotion support
Business development
Trade promotion and market analysis
Support to improve business climate
Support for labour skills development
Infrastructure development support
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Aid for trade and other development finance flows
7
14
27
30
46
53
22
30
28
29
27
24
22
15
16
10
2
1
12
11
2
1
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Income remitted by migrants
Non-concessional financing
Official development assistance
Domestic public investment
Domestic private investment
Foreign direct investment
Responses (%)
MOST IMPORTANT IMPORTANT NOT IMPORTANT NOT SURE
Most important sources of finance to connect firms to value chains according to partner countries
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Development finance flows in low income countries
-20
0
20
40
60
80
100
120
140
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010US
D b
illio
n a
t cur
rent
pric
es a
nd
curr
ent e
xcha
nge
rate
s
FDI Migrant remittances Total net ODA Total net OOF
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Trade facilitation statement at the Global Review of Aid for Trade
27 governments and IGOsTF support increased 365% to $381m (2011)$1.2 billion disbursed since 2006“Members can be confident of on-going support”
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2. Outlook on future AfT work
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The Bali package (Ministerial Declaration)
1. Trade facilitation2. Agriculture3. Cotton4. Development and LDC issues
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Agreement on Trade Facilitation
• Section I – Technical provisions
• Section II – Special and differential treatment provisions for developing countries and LDCs– Self-designation of provisions into Categories A, B and C– Category C provisions: require the acquisition of
implementaiton capacity through the provision of assistance and support for capacity building
Key role of Aid for Trade in the implementiation of the agreement
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Ministerial Decision on Aid for Trade
Ministers •recognize the continuing need of AFT •reaffirm their commitment to AFT
•New AFT Work Programme should be framed by post-2015 development agenda
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Summary points• The 4th Global Review highlighted key barriers for
developing country firms to connect to value chains• Key issues and trends:
– Closer cooperation between the private and public sector– Aid for trade as complement or substitute to other
development finance flows– Growing importance of South-South relationships
• Future Aid for Trade work influenced by:– Trade Facilitation Agreement – Post-2015 Development Agenda