Aid for trade granted to developing countries is an excellent way of implementing the 2013 universal agenda for sustainable development and achieving the 17 sustainable development goals (SDGs) in the view of European development ministers. For that reason, therefore, at their meeting on Monday 11 December, they gave their support to the revised strategy proposed by the Commission on 14 November to make the policy in this area more effective (see EUROPE 11904).
In its conclusions, the Council of the EU welcomes the Commission communication “Achieving Prosperity through Trade and Investment: Updating the 2007 Joint EU Strategy on Aid for Trade” which takes account of these priorities.
The Council encourages swift implementation of the action proposed to enhance the economic impact and the sustainability of EU aid for trade policy.
Although the EU is the world’s top aid for trade donor, providing more than €13 billion in 2015 and almost €100 billion between 2008 and 2015 – almost a third of global aid for trade – the Council notes that this kind of aid has been stalling for the least developed countries, those in a precarious position and countries affected by conflict. It is delighted, therefore, that the revised strategy looks to increase the aid for these countries.
It also highlights that the opportunities offered by EU trade instruments are being under-used and that fragmentation of aid for trade has impaired the impact of this kind of aid.
The Council also of the EU and the Commission to promote measures that effectively address these problems by making better use of various development financing tools. It calls on the EU and its member states to improve the coordination and coherence of their aid for trade with other forms of assistance and increase its leverage through blending instruments, risk-sharing guarantees, technical assistance and capacity building as exemplified by the external investment plan.
Noting the important role of the private sector in identifying needs and encouraging reforms in the business and trading environment at national, regional and international levels, the Council calls for deeper dialogue and closer cooperation between the EU28 and the private sector. (Original version in French by Aminata Niang)