G20 Development Working Group Submissions
TRADE7
Strengthening the ability of developing countries
to trade through greater market access, integration
of regional markets and the availability of trade
finance are critical to inclusive growth - although
not automatic, no country has grown and reduced
poverty without access to and the ability to trade.
Individual measures in each of these areas are
important. Combined with improved infrastructure
and trade facilitation, trade finance, market access
and integration could provide a major boost for the
economies of developing countries, in particular
LICs.
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In the spirit of the Istanbul Programme of Action
calling for a significant increase in the LDC share of
global trade - the G20 committed in its 2010 MYAP
on Development to action on Duty-Free and Quota
Free (DFQF) access to support LDCs in increasing
their share of global trade, Aid for Trade (AFT), trade
facilitation, trade finance, and regional integration
- with a particular focus on enhancing intra-regional
trade in Africa.
By committing through the 2010 MYAP to supporting
the ability of developing countries to trade, G20
members have called on relevant IOs: to monitor
and report on G20 progress towards Hong Kong
commitments on DFQF and maintenance of AfT
levels; to report on the impact of AfT in the light
of the July 2011 Global Aid for Trade Review;
to identify barriers/obstacles to regional trade
integration in Africa, including coordinating
a collective multilateral agency response on
Trade Facilitation; and to review the availability
and effectiveness of Trade Finance for LICs. The
G20 has given important support for actions that
other organizations have been taking, and the
additional G20 political signaling has reinforced
efforts to promote increased trade access, regional
integration in Africa and provision of trade finance
during the period of financial turbulence.
Saint Petersburg Accountability Report on G20 Development Commitments
50
It is worth considering whether ongoing commitments
of the Seoul MYAP on Trade (namely, DFQF access
and the monitoring of AfT levels) would be better
Chapter 2
Implementation of G20 Commitments
on Development
Trade Finance Success Story
Maintaining the availability of trade finance is essential
to ensuring the resilience of developing countries in times of
global financial uncertainty. Recognizing that availability of
trade finance continues to be a problem for many, building on
recommendations from the WTO 2011 Trade Finance Report and
consulting with the OECD working group on export credit, the
DWG has committed to continued monitoring of the situation for
LICs. The G20 has provided political support, including through
DWG dialogue with the AfDB, for an important initiative to
establish a trade finance facility at the AfDB, which would allow
all MDBs to have a trade finance facility in place.
We congratulate the AfDB on the establishment of the
Trade Finance Plan approved by the AfDB Board in February
2013. This paves the way for operationalizing a US$1 billion
facility to help address critical market demand for trade finance
in Africa by providing support for trade in vital economic sectors
such as agribusiness and manufacturing. Moreover, this will foster
financial sector development, regional integration, and contribute
to government revenue generation.
More generally, the AfDB has welcomed the work done
by the DWG, and has said how influential the pillars articulated
in the Seoul MYAP have been in informing the development and
focus of the AfDB's own strategy.
located within the G20 Trade Track in the future.
This could allow for better alignment between these
trade actions, with potential development benefits,
and G20 wider trade interests.
In-Depth Assessment: G20 Aid for Trade
A range of supply-side and trade-related
infrastructure obstacles prevent poor countries from
reaping the full benefits of trade. The Aft Initiative
seeks to mobilize resources to address these trade-
related constraints, building trade capacity and
infrastructure that is needed.
G20 leaders committed to maintaining, beyond
2011, AfT levels that "reflect the average of the last
3 years (2006 to 2008)", as well as considering
the outcome of the July 2011 Global Aid for
Since 2010, Argentina, the EU and the UK have co-
facilitated this work under the DWG's Trade Pillar. The
World Bank, AfDB, OECD and WTO have been its major
contributors.View entire presentation