Brussels, 14/12/2005 (Agence Europe) - In lengthy conclusions on Aid for Trade adopted the day before the opening of the World Trade Organisation Summit in Hong Kong, the EU General Affairs Council of 12 December recalled the EU's 'stated commitment to ensuring a development-friendly, sustainable and ambitious outcome to the Doha Development Agenda that maximises development gains and contributes to the achievement of the Millennium Development Goals (MDGs).' The conclusions also recall 'the commitment made at the G8 Summit in July 2005 by the President of the European Commission to increase the level of trade-related aid from European Community sources to EUR 1 bn a year', adding that 'there is a need to put in place a substantive, comprehensive and credible 'Development Package', including on Aid for Trade, to help poor countries gain from measures within the Doha Round.' The conclusions set out the following priorities:
Enhanced Integrated Framework. 'The Integrated Framework for Trade Related Technical Assistance for LDCs (less developed countries) (IF) is an important mechanism for helping poor countries use trade-related assistance and infrastructure investment effectively…The EU… will provide resources to enable the enhanced IF to be adequately and predictably funded.'
Trade-Related Assistance. 'Trade related technical assistance and capacity building covers two broad categories: trade policy and regulation; and trade development… Within their commitments to future increases to development assistance, Member States will strive to increase the EU's collective spending on trade-related assistance… with a view to reaching a figure of EUR 1 bn per year by 2010.'
Infrastructure. 'The EU confirms the importance of aid to help improve developing countries' infrastructure, in particular because infrastructure is complementary to trade-related assistance in stimulating export-led growth, and will work towards more effective and increased infrastructure activity, particularly in Africa. Aid for infrastructure should therefore be assessed on qualitative aspects with a view to maximising its benefit in terms of poverty reduction and environmental protection.'
Adjustment. 'Some developing countries are likely to be faced with adjustment difficulties… The importance of providing additional support for trade adjustment and integration was recognised in the Millennium Review Summit outcome… The EU recognises the need for adequate provision for trade adjustment, notably for countries facing erosion in trade preferences. The IMF and the World Bank should provide transparent monitoring of the impact of erosion in preferences and trade liberalisation on a country by country basis, to allow resources to be made available in response, including through the IMF's 'trade integration mechanism' and the WB's programmes.'