Trade related capacity building: A priority for the French cooperation DPDEV/P

Capacity building A strong priority for the French cooperation Diversity of approaches: –Education and research –Sectoral policy support and projects –Local, national, regional levels

I. Aid for Trade : a new framework

Aid for trade a) new commitment –EU commitment : 2 billions Euros in 2010 –1 Billion Euros for Member state –Only Trade related assistance (mainly trade related capacity building) –For France, around 150 million per year

Aid for Trade In million Euros Notification to the WTO/OECD data base (TRAs) Commitments (not disbursements) Not the same rules as DAC data base /06 132,495,459,584,8148,8104,2 b) b) French aid for trade (TRAs)

French Aid for trade characteristics  A geographically targeted Aid : Priority for Sub-Saharan Africa (53%) and ACP countries (56%)  Strong inter-annual variations in numbers and in geographical targeting (in 2004 : 57% for Asia – Afghanistan and Vietnam)  Absorption capacity problems, especially for LDCs

French Aid for trade Characteristics A diversity of sectors a) Trade policies and regulations –Support to trade negotiations (i.e. EPA, WTO) –Norms, IPR, Geographic indications, copying –Maritime control, border control and custom services –Institutional support

French Aid for trade Characteristics b) Trade development –Enterprise environment (ex: professional organisations, inter- professional organisation) –Investment promotion –Development of micro-finance –Export capacity

French Aid for trade Characteristics Diversity of organisations involved 1) Bilateral aid :  AFD,  Ministry of Foreign Affairs,  Ministry of Agriculture,  MILDT (mission lutte contre la drogue)  SCTIP (Service coop tech police)  Gnis, UBI, …

French Aid for trade Characteristics 2) Multilateral Aid :  European cooperation : EDF and other regional programs, OLAF (Anti-fraud Office), Eurodouane (European custom office), Euromaid (European cooperation for Mediterranean region)…  IMF  UNIDO, ITC, UNCTAD  World Bank  WTO

French Aid for trade Characteristics a) Multiannual programs –Sectoral programs, PRCC (AFD) –Regional and thematic programs (Min Foreign Aff) b) Short term financing –Missions, expertise –Conference, seminars –Study –Audits, evaluations –Grants c) Technical assistance INSTRUMENTS

Next step Define a French Aid for Trade strategy –Better programming, previsibility and coordination of organisations involved –Implementation of the European Aid for trade strategy –Better follow-up and capitalisation –Lessons from the PRCC evaluation Implementation of the Enhanced Integrated Framework Follow OECD/WTO work on Aid for trade monitoring –Evaluation –Datas –Coordination of donors

II. Trade-related capacity development

Trade capacity support request –Should be demand driven –…based on a precise need analysis –…related to inter-ministerial as well as inter-professional dialogue –Can be a demand from different organisations : Trade Ministry sectoral ministry, regional organisations, private organisations –Should be analysed in relation with other support, programs… –Should be inserted in a global capacity building strategy/trade related strategy –Should adapt to evolution of the trade context –Should take into account national/regional needs

Trade capacity support request –For specific expertise : demand to the Embassy can be answered by specialised organisations if adapted –For project support : Demand to multilateral organisation Demand to AFD : –Within a sectoral project (related to national cooperation priorities) –Within a specific project (PRCC)

Trade capacity support request PRCC : A program dedicated to export capacities: -For export capacity and implementation of international trade rules : implementation of international norms to production and distribution chains, improvement of control and inspection systems, support to exporting companies, adaptation of national organisation of export promotion -Created in 2002 with two phases (2002/05, 2006/08) for about 25 million €/phase -Activities such as technical assistance, training, information, trade related studies, equipment… PRCC 3 should include regional projects

Trade capacity support request French cooperation organisation : -Geographic concentration : 3 countries in Asia (out of 57 countries) -Thematic concentration : 3 sectoral concentration per country (decided with national authorities) -Operation through AFD