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Lamy Opens Aid for Trade Review

Director-General says aid for trade will help developing countries exit economic crisis.
Compiled by staff 
Published: Jul 6, 2009

World Trade Organization Director-General Pascal Lamy spoke at the opening of the Second Global Review of Aid for Trade on Monday.

"If Aid for Trade was urgent in 2007, it is essential today," Lamy said. "It is the investment that will allow many developing countries prepare to exit the crisis by enhancing their trade capacity."

The First Review of Aid for Trade was held a year and a half ago and according to Lamy much has been achieved since then. Regional review meetings in Zambia, Jamaica and Cambodia which preceded the Second Review have underlined the commitment of partners and donors to cooperate and coordinate in the pursuit of common goals.

"We have gone a long way since we launched this initiative in 2005," Lamy said. "Aid-for-Trade has entered a new phase. It is living up to its promise. We are moving from making trade possible, to making it happen. In the past 18 months, we have stressed implementation in national and regional events."

 Lamy says also the monitoring framework has been refined, adding work on indicators to the self-assessment procedure and monitoring of Aid for Trade flows. He also says a very gratifying outcome of this year's monitoring exercise has been the engagement of developing country members.

"But let me also be candid," Lamy said. "The global trading environment has worsened dramatically since our first review. Global trade growth of 6% in 2007 has been replaced by a projected 10% contraction in 2009. It is one of the biggest challenges that the multilateral trading system has faced since its inception. The crisis has a human face. Poverty alleviation targets have become more challenging to achieve because of among things the decline in export demand for goods. When the recovery will begin is anyone's guess. For everyone concerned, it is clear that it can't come too quickly."



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