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Aid-for-Trade

Aid-for-trade supports developing and least developed countries (LDCs) to use trade as a tool for sustainable economic development. It is an important part of the development pathways of these countries, helping to promote future economic sustainability, diversification, and global economic integration.

Aid-for-trade assists developing countries and LDCs to address challenges related to supply-side constraints, as well as obstacles to hard and soft economic infrastructure development, and improves access to regional and global markets.

Aid-for-trade also supports developing countries and LDCs to effectively participate in and benefit from the multilateral, rules-based trading system – with the WTO at its core; and the WTO provides a common, transparent, and predictable set of rules upon which to base economic development through trade.

The WTO-led Aid for Trade Initiative was launched at the 2005 Hong Kong World Trade Organization (WTO) Ministerial Conference (MC6). It recognises the importance of trade in driving economic growth and the need to assist developing countries and LDCs to improve their capacity to trade.

The Aid-for-Trade Initiative highlights the role trade can play in development and establishes a regular monitoring and evaluation exercise through the biannual Global Review of Aid-for-Trade. The Global Review takes stock of the global state of aid-for-trade and helps catalyse further funding.

Australia's Aid-for-Trade

The goal of Australia's aid-for-trade is to support developing countries and LDCs to effectively use trade as a tool for sustainable, inclusive, and locally-led economic growth.

Australian aid-for-trade is wide ranging, demand drive, and delivered through multilateral, regional and bilateral programs and partnerships.

Table summarising the composition of Aid-for-Trade in the financial year of 2022/23: (footnote: based on OECD Creditor Reporting System (CRS))
1. 51.9 per cent in Economic Infrastructure that includes transport and storage, followed by energy supply and generation. 
2. 42.8 per cent in Productive Capacity that includes agriculture, business and other services, banking and finance.
3. 5.28 per cent in Trade Policy, regulations and trade adjustment.
The Aid-for-Trade Total in the financial year of 2022/23 is 18.7 per cent of Australia’s total ODA. In brackets: $895.3 million of $4.78 billion total ODA. Aid-for-Trade to the Pacific has increased by 22.3 per cent of Australia’s total ODA to the Pacific in the financial year of 2022/23. In brackets: $410.3 million of $1.84 billion total ODA. Small note: It is at an all-time high since the financial year of 2015/16.

In line with Australia’s International Development Policy, Australia’s aid-for-trade prioritises development impact, gender equality, and sustainability.

table listing the percentage allocation of Aid-for-Trade ODA to our top 10 partner countries, in brackets (beneficiaries), in the financial year of 2022/23.
1.Papua New Guinea – 24.4 per cent. 
2. Indonesia – 6.8 per cent.
3. Vietnam – 4.4 per cent.
4. Solomon Islands – 4.0 per cent. 
5. Vanuatu – 3.0 per cent.
6. Cambodia – 2.8 per cent. 
7. Palau – 2.5 per cent. 
8. Fiji – 2.4 per cent. 
9. Timor-Leste – 2.1 per cent. 
10. Philippines – 1.4 per cent
A circular graph showing the percentage allocation of Aid-for-Trade ODA by Region, in brackets (Pacific, SE Asia, SW Asia, Africa)
• 45.8 per cent in Pacific. 
• 24.7 per cent in Southeast and East Asia.
• 22.1 per cent in Other.
• 2.8 per cent in South and West Asia.
• 2.4 per cent in Sub-Saharan Africa.
• 2.2 per cent in Other Africa.
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