The thirteen members of the WTO Aid for Trade Task Force met again on 17 July to discuss the recommendations they are to make to the entire Membership by the end of the month. The day before, aid for trade (A4T) was briefly in the political spotlight when the G8 heads of state in St. Petersburg specifically stressed that it was "essential in helping many developing economies to benefit from trade."

The latest draft version of the Task Force's recommendations, dated 13 July, views A4T as assisting developing countries to actively integrate into the multilateral trading system, as opposed to simply helping them benefit from liberalised trade (see BRIDGES Weekly, 5 July 2005). It specifies that additional, predictable and effective financing are fundamental to A4T efforts. Sources report that the US representative suggested that the adequacy of resources was more relevant than their additionality.

The Task Force urges recipient countries to fully commit to mainstreaming trade into development strategies. The new recommendations refer to regional, sub-regional and cross-border infrastructure and policy cooperation as key issues that urgently need to be addressed. The paper suggests that the September World Bank Development Committee meeting in Singapore, which is set to discuss these issues, may provide some guidance on how to proceed.

As for how to deliver A4T, Task Force members think that improving existing national, regional, and global mechanisms should be the priority, rather than the creation of a new all-encompassing fund. The updated recommendations emphasise that administrative costs associated with aid delivery should be minimised to ensure that the resources go to the actual implementation of projects and programmes.

The new recommendations stressed that A4T is a complement to, not a substitute for, a successful Doha Round. The draft document would have the WTO director-general formulate an A4T package on the basis of the recommendations as soon as possible, and put it to the General Council for consideration and eventual implementation.

The Task Force's next meeting is scheduled for 20 July.

ICTSD reporting.