Australia’s aid for trade approaches Presentation by Henni Arup Multilateral Aid for Trade Section Department of Foreign Affairs and Trade

Presentation structure  Aid for trade policy and strategic target  Spend to date  Aid for Trade and other thematic strategies  Objectives and priorities of the Strategy  Role of the Multilateral Aid for Trade Section  Australia’s Global Trade Integration Facility  Key resources

Policy and target  The Government announced in Australian aid: promoting prosperity, reducing poverty, enhancing stability that aid would be used as a catalyst to promote economic growth and poverty reduction, including through a strong emphasis on aid for trade. The first strategic target for the aid program is:  Promoting prosperity: promote economic development, by increasing our aid for trade investments to 20 per cent of the aid budget by 2020.

How much, what and where?  In , Australia’s aid for trade represented about AUD823 million or 16.4 per cent of Australia’s total Official Development Assistance.  The majority of Australia’s aid for trade assistance was for building productive capacity including in agriculture (51 per cent), economic infrastructure including transport and storage (43 per cent of total aid for trade), and trade policy and regulation (6 per cent).  Australia’s aid for trade was directed towards Global/Multi-country programs (32 per cent), East Asia (28 per cent), the Pacific including Papua New Guinea (23 per cent), South and West Asia (10 per cent), and Sub-Saharan Africa and the Middle East (7 per cent).

Aid for trade and other thematic strategies  Australia’s Aid for Trade Strategy was released June 2015  The Strategy should be considered in parallel with other performance benchmarks, and complementary thematic strategies:  agriculture, fisheries & water  infrastructure  private sector development and engagement  gender equality and women’s empowerment strategy

Objectives and Priorities  Objectives  1. Improve the regulatory environment in developing countries  2. Address poor economic infrastructure in developing countries  3. Improve the productive capacity of the private sector in developing countries  Priority areas/sectors  Trade and investment policy and facilitation  Global value chains  Economic empowerment of women  Infrastructure for connectivity  Public Private Partnerships  Economic empowerment of women  Private sector development  Agriculture  Services  Knowledge and skills development  Economic empowerment of women

Aid for Trade Growth & Development Innovative Approaches Complementary Effort New Partnerships Coherence Growth & Development - Aid for trade helps boost trade, which in turn contributes to economic growth. Coherence – Allows for coordination and consistency of approach to aid for trade across the Department. Also important is to ensure that Australia’s growth, trade and development objectives are consistently progressed in various for a including in the WTO, UN, Post-2015 Development Agenda, and G20. Innovation – Aid for trade encourages new ways of thinking including addressing traditional challenges. New Partnerships - Aid for trade provides a platform for partnerships with the private sector. Complementary Effort – Aid for trade can help improve the success of other development efforts. AID FOR TRADE ENCOURAGES A NEW APPROACH

Multilateral aid for trade section’s role Three main roles:  Aid for trade policy across DFAT, including the target  Advice to country and regional programs  Global Trade Integration Facility management

Global Value Chains improve customs procedures at the border services sector reform to facilitate trade and encourage economic diversity modernise and harmonise commercial laws and standards Trade & Health help lawmakers implement effective laws against non- communicable diseases connects researchers from developing countries with multinational pharmaceutical companies to address neglected tropical diseases help the visually impaired get access to books Women & Trade help women- owned businesses to find export markets facilitate cooperatives, improve business management, and access procurement processes Business & Commerce improve bank governance and inter-bank relationships to facilitate trade finance help undertake reforms to attract, retain and deepen foreign direct investments improve company reporting and governance AUSTRALIA’S GLOBAL TRADE INTEGRATION FACILITY

Strategy for Australia’s Aid for Trade Investments Other thematic strategies: Gender equality and women’s empowerment strategy Strategy for Australia's aid investments in private sector development Strategy for Australia's aid investments in private sector development Ministerial statement on engaging the private sector in aid and development Ministerial statement on engaging the private sector in aid and development Strategy for Australia’s aid investments in agriculture, fisheries and water Strategy for Australia’s aid investments in agriculture, fisheries and water Strategy for Australia's Investments in Economic Infrastructure Aid for Trade Investments - Operational Guidance and Performance Assessment Aid for Trade Investments - Operational Guidance and Performance Assessment WTO/OECD Global Review of Aid for Trade and Aid for Trade at a Glance 2015 WTO/OECD Global Review of Aid for Trade and Aid for Trade at a Glance 2015 The Role of Trade in Ending Poverty Aid for Trade in Asia and the Pacific KEY RESOURCES