European Commission Directorate-General for Trade

Aid for Trade

Aid for trade is financial assistance for developing countries specifically targeted at helping them develop their capacity to trade. It can include help in building new infrastructure, improving ports or customs facilities and assistance in helping factories meet European health and safety standards for imports. Helping developing countries develop the means to benefit from open global markets is an important part of a long-term strategy for global poverty reduction, alongside debt relief and general development aid.

Over the last few years, European Aid for Trade has helped businesses in Fiji, Kenya, Vietnam, Algeria, Madagascar and many other countries grow and develop trading links with the EU.

The EU is the leading global advocate of aid for trade and the world's biggest source of aid for trade. In December 2005 the EU made an overall commitment to increase its collective annual spending on trade-related assistance (one component of the overall Aid for Trade budget) to €2 billion every year by 2010. €1 billion of this is to come from the European Commission and another €1 billion from EU Member States. In 2007, total Aid for Trade from the EU amounted to €7.2 billion, and specific commitments on trade-related assistance reached €1.98 billion, reflecting substantial EU progress towards reaching its target.

In December 2007, the EU adopted its joint strategy on Aid for Trade, wich also includes the pledge on trade-related assistance made in 2005. As part of the Strategy, the European Commission also produces an annual monitoring report on EU Aid for Trade spending.

• Factsheet on Aid for Trade

The Enhanced Integrated Framework

Since 2006, experts have been working in Geneva to develop an 'Enhanced Integrated Framework' (EIF) that will support governments in Least Developed Countries in building trade capacity development measures into overall national growth strategies. The EIF is a unique partnership model between beneficiaries, donors, and international agencies such as the UN Development Programme, the World Trade Organisation, the World Bank, the International Monetary Fund and UNCTAD. The EIF puts a strong emphasis on local ownership of development strategies. Alongside contributions from EU Member States, the European Commission has pledged €10million to EIF Trust Fund and provides support on the ground by taking the role of a 'facilitator' in 12 Least Developed Countries.

More about the WTO Enhanced Integrated Framework

Supporting information

For more information, try a Document search on Aid for trade