USTR - United States Issues Report on $750 Million in Global Trade Capacity Building Aid
Office of the United States Trade Representative

 

United States Issues Report on $750 Million in Global Trade Capacity Building Aid
Contact: Richard Mills/ Ricardo Reyes 998-883-3583 (Cancun) 09/09/2003

With Additional $1.2 Million, U.S. Doubles WTO Trade-Related Technical Assistance

CANCUN, MEXICO – The United States today issued a summary report of the approximately $750 million in trade capacity building assistance it has provided this year. "U.S. Contributions to Trade Capacity Building: Improving Lives through Trade and Aid" outlines U.S. programs across 35 categories that help developing countries make the most of open global markets.

In conjunction with the report, U.S. Trade Representative Robert B. Zoellick announced an additional $1.2 million for trade-related technical assistance (TRTA) to the World Trade Organization (WTO). This new multilateral contribution augments $1 million given earlier this year, bringing total U.S. TRTA for the Doha Development Agenda to $3 million since the launch of negotiations in November 2001.

"The $1.2 million announced today doubles the U.S. contribution to the WTO and bolsters our efforts in Geneva to focus on three priorities: trade-related technical assistance, the Integrated Framework, and the International Trade Centre," said Zoellick. "These U.S. trade capacity building efforts stem from the conviction that trade and globalization are critical to the growth of developing and developed countries alike."

"Trade capacity building stands at the nexus of trade and development," added Zoellick. "All nations gain when developing countries are able to harness the power of trade and openness to boost economic growth and accelerate poverty reduction. The United States is committed to more than just negotiating open markets. In partnership with developing countries, we are crafting practical solutions that enable them to actively participate in—and benefit more fully from—the global trading system."

A portion of the new trade capacity building assistance announced today is a $200,000 grant by the U.S. Agency for International Development (USAID) to the Integrated Framework Trust Fund. USAID will work with the International Trade Centre to ensure that developing and transition countries have access to market analysis tools and training courses on trade in services.

Background

The United States is the largest single country donor of trade capacity building assistance. Total U.S. funding for trade capacity building activities was $752 million in FY 2003, up from $638 million in 2002—nearly an 18 percent increase. Regional funding in 2003 totaled $174 million in the Middle East and North Africa; $150 million in Latin America and the Caribbean; $133 million in sub-Saharan Africa; $92 million in Asia; $84 million in the former Soviet Republics; $65 million in Central and Eastern Europe; and $53 million for non-targeted global projects.

WTO Trade-Related Technical Assistance: Since the Doha Ministerial Meeting, the WTO has developed an annual technical assistance plan specifically related to the Doha negotiations and WTO agreements.

The Integrated Framework (IF): The IF is the mechanism for coordinating the work of six multilateral agencies to integrate trade into the development strategies of the Least-Developed Countries (LDCs)—a group identified by the United Nations as the world’s 49 most economically disadvantaged countries. The World Bank has completed pilot Diagnostic Trade Integration Studies (DTIS)—in-depth needs assessments—for Cambodia, Lesotho, Madagascar, Mauritania, Malawi, Senegal and Yemen. Additional DTISs are currently scheduled for Burundi, Djibouti, Eritrea, Ethiopia, Guinea, Mali and Nepal. Twelve other LDCs have requested to participate in the IF process, and their requests are being evaluated according to criteria agreed by the IF Steering Committee. USAID provides assistance supporting the efforts of the LDCs under the IF.

The International Trade Centre: The International Trade Centre works with developing countries and economies in transition to establish effective trade promotion programs for expanding exports and improving import operations, including in the area of services. USAID has previously formed an alliance with the International Trade Centre to make the TradeMap Interactive Database available to public and private sector users in the developing world. ITC’s TradeMap provides information on trade flows and nontariff barriers and enables a country to analyze its competitiveness in world markets.

 
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